Home prices across the U.S. are reaching all-time highs, prompting worry over
another boom-and-bust scenario like we experienced roughly ten years ago. Yet, as
we glance across the state of residential real estate, what is clear compared to the
last extended run of price increases is that lending standards are now much stronger
than they were before. Incomes must be verified, a reasonable amount of money
must be paid toward the home prior to purchase and a more stringent loan approval
process is in place to prevent a repeat performance of the Great Recession.
New Listings were up 14.5 percent to 1,788. Pending Sales increased 12.7 percent
to 1,371. Inventory grew 4.9 percent to 4,357 units.
Prices were still soft as Median Sales Price was down 0.1 percent to $163,850. Days
on Market decreased 14.8 percent to 69 days. Months Supply of Inventory was
down 4.7 percent to 4.1 months, indicating that demand increased relative to supply.
In addition to a stronger base upon which to conduct real estate transactions, the
overall economy is in better shape than it was a decade ago. More jobs are
available, unemployment is relatively low and workers have more faith in their wages
and the potential for wage increases. Although we continue to battle an inventory
shortage in much of the country, optimism remains high for a successful summer for
buying and selling homes.
Information courtesy of CMLS*