January brings out a rejuvenated crop of buyers with a renewed enthusiasm in a new calendar year. Sales totals may still inevitably start slow in the first half of the year due to ongoing inventory concerns. Continued declines in the number of homes available for sale may push out potential buyers who simply cannot compete for homes selling at higher price points in a low number of days, especially if mortgage rates continue to increase.
New Listings were down 24.6 percent for single family homes and 7.5 percent for Condo/TIC/Coop properties. Pending Sales decreased 9.1 percent for single family homes but increased 0.7 percent for Condo/TIC/Coop properties.
The Median Sales Price was up 7.1 percent to $1,250,000 for single family homes but decreased 5.7 percent to $1,000,000 for Condo/TIC/Coop properties. Months Supply of Inventory decreased 18.8 percent for single family units and 5.0 percent for Condo/TIC/Coop units.
In case you missed it, we have a new U.S. president. In his first hour in office, the .25 percentage point rate cut on mortgage insurance premiums for
loans backed by the Federal Housing Administration (FHA) was removed, setting the table for what should be an interesting presidential term for real estate policy.
FHA loans tend to be a favorable option for those with limited financial resources. On a brighter note, wages are on the uptick for many Americans, while unemployment rates have remained stable and relatively unchanged for several months. The system is ripe for more home purchasing if there are more homes available to sell.
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