Posted by Charlene Delaney
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 23.0 percent for single family homes and 26.5 percent for Condo/TIC/Coop properties. Pending Sales decreased 20.1 percent for single family homes but increased 0.4 percent for Condo/TIC/Coop properties.
The Median Sales Price was up 6.4 percent to $1,362,500 for single family homes and 1.0 percent to $1,044,000 for Condo/TIC/Coop properties. Months Supply of Inventory remained flat for single family units but was up 26.3 percent
for Condo/TIC/Coop 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.
Click here for full report: SFAR_MarketFocus_2016-July