February 2018
The three most prominent national market trends for residential real estate are the
ongoing lack of abundant inventory, the steadily upward movement of home prices
and year-over-year declines in home sales. Sales declines are a natural result of
there being fewer homes for sale, but higher prices often indicate higher demand
leading to competitive bidding. Markets are poised for increased supply, so there is
hope that more sellers will take advantage of what appears to be a ready and willing
buyer base.
New Listings were down 3.8 percent to 1,314. Pending Sales increased 1.0 percent
to 1,084. Inventory grew 7.3 percent to 3,601 units.
Prices moved higher as Median Sales Price was up 7.6 percent to $166,788. Days
on Market decreased 13.3 percent to 72 days. Months Supply of Inventory was up
3.1 percent to 3.3 months, indicating that supply increased relative to demand.
In February, prevailing mortgage rates continued to rise. This has a notable impact
on housing affordability and can leave consumers choosing between higher
payments or lower-priced homes. According to the Mortgage Bankers Association,
the average rate for 30-year fixed-rate mortgages with a 20 percent down payment
that qualify for backing by Fannie Mae and Freddie Mac rose to its highest level
since January 2014. A 4.5 or 4.6 percent rate might not seem high to those with
extensive real estate experience, but it is newly high for many potential first-time
home buyers. Upward rate pressure is likely to continue as long as the economy
fares well.
Information courtesy of CMLS*
