Tuesday, August 16, 2016

MARKET UPDATE FOR JULY

MARKET UPDATE FOR JULY

Even as prices rise in many communities, homes are selling faster now than they have in the past several years. This creates a situation where buyers need to move fast in order to secure homes, and they may have to pay more for them. While increasing prices generally coax more selling activity, there has been some hesitancy among potential sellers who worry that they will not be able to buy a desirable and reasonably priced home once they sell.
New Listings were down 5.0 percent for Single Family homes and 3.1 percent for Townhouse-Condo properties. Pending Sales decreased 47.1 percent for Single Family homes and 50.4 percent for Townhouse-Condo properties. 

The Median Sales Price was up 3.9 percent to $639,000 for Single Family homes and 6.5 percent to $410,000 for Townhouse-Condo properties. Months Supply of Inventory increased 8.6 percent for Single Family units and 10.3 percent for Townhouse-Condo units. Low housing supply has already prevented an outright national boon in sales activity, despite a continuation of near record-low mortgage rates and an unemployment rate under 5.0 percent deep into 2016. 

The issue is not purchasing power. Many areas are falling behind last year's closed sales totals simply because of lack of available inventory. As this continues, higher prices may put a deeper squeeze on the current buyer pool.

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