Posted by Charlene Delaney
Closed sales began to cool for much of the country last month, and One-Year Change in conventional wisdom indicates that year-over-year declines are going to be present for the remainder of the year, given the low inventory situation in most markets. Demand is certainly present and has created competitive situations that have kept prices up. Rental prices are also up, which may lure more toward homeownership.
New Listings were down 26.5 percent for single family homes and 21.7 percent for Condo/TIC/Coop properties. Pending Sales decreased 6.3 percent for single family homes and 1.7 percent for Condo/TIC/Coop properties.
The Median Sales Price was up 2.6 percent to $1,257,500 for single family homes and 1.4 percent to $1,060,000 for Condo/TIC/Coop properties. Months Supply of Inventory decreased 10.0 percent for single family units but was up 21.1 percent for Condo/TIC/Coop units.
As inventory continues to drop, the contradictions of today’s market are evident. Sellers should feel confident enough to list homes at fair prices and receive meaningful offers in a healthy residential real estate and overall economic environment. However, there may be lingering worry over the availability of move-in ready homes to replace what was sold. On a brighter note, building permits are trending upward. That news should be weighed against the fact that the highest level of activity is in multifamily rentals.
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