January 2017
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 up 15.0 percent to 1,395. Pending Sales increased 26.1 percent
to 1,030. Inventory grew 3.3 percent to 4,198 units.
Prices moved higher as Median Sales Price was up 1.3 percent to $151,475. Days
on Market decreased 3.3 percent to 89 days. Months Supply of Inventory was down
7.0 percent to 4.0 months, indicating that demand increased relative to supply.
In case you missed it, we have a new U.S. president. In his first hour in office, the
.25 percentage point rate cut 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.
Information courtesy of CMLS*
