Posted by Charlene Delaney
Home prices were up during summer across the nation in year-over-year comparisons. With the economy on full mend, Federal Reserve Chair Janet Yellen has predicted a fine-tuning of monetary policy before the year ends. In tandem with the improved economy, the unemployment rate for July 2015 remained at 5.3 percent for the second month in a row. It is widely believed that interest rates will go up before the year is over. Generally, this does not happenwithout careful consideration for the impact such a move will have on residential real estate.
New Listings were down 16.0 percent for single family homes and 21.6 percent for Condo/TIC/Coop properties. Pending Sales decreased 3.9 percent for single family homes and 10.5 percent for Condo/TIC/Coop properties.
The Median Sales Price was up 26.6 percent to $1,225,444 for single family homes and 12.4 percent to $1,045,000 for Condo/TIC/Coop properties. Months Supply of Inventory decreased 25.0 percent for single family units and 26.3 percent for Condo/TIC/Coop units.
Statistics released by the U.S. Census Bureau and the Department of Housing and Urban Development indicate that privately-owned housing starts in July 2015 rose 10.1 percent compared to last year to the highest level the market has seen since October 2007. This bodes well for the eventual landing of a flock of potential buyers currently holding in a rental pattern. As ideal summer weather diverges toward autumn, we will begin to see some seasonal relaxation, but the market should still look positive when compared to last year.
Click here for full report: SFAR_MarketFocus_2015-August