As we enter the final quarter of 2016, not much has changed since the year began. Market predictions have been, in a word, predictable. A relatively comfortable pace of activity has been maintained thanks to continuing low unemployment and mortgage rates. The one basic drag on market acceleration has been inventory decline. There is little to indicate that the low inventory situation will resolve anytime soon.
New Listings were down 22.4 percent for single family homes and 15.8 percent for Condo/TIC/Coop properties. Pending Sales decreased 15.4 percent for single family homes and 14.1 percent for Condo/TIC/Coop properties.
The Median Sales Price was up 11.0 percent to $1,407,500 for single family homes and 4.5 percent to $1,150,000 for Condo/TIC/Coop properties. Months Supply of Inventory increased 9.1 percent for single family units and 14.8 percent for Condo/TIC/Coop units.
Builder confidence is as high as it has been in more than a decade, yet the pace of economic growth has been slow enough to cause pause. A low number of first-time buyer purchases and a looming demographic shift also seem to be curbing the desire to start new single-family construction projects. As older Americans retire and downsize, single-family listings are expected to rise. The waiting is the hardest part.
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