June 2017
There has been a general slowdown in sales across the country, and this cannot be
blamed on negative economic news. Unemployment remains low and wage growth,
though nothing to overly celebrate, has held steady or increased for several years in
a row. There is strong demand for home buying, emphasized by higher prices and
multiple offers on homes for sale in many submarkets. As has been the case for
month after month – and now year after year – low inventory is the primary culprit for
any sales malaise rather than lack of offers.
New Listings were up 14.9 percent to 1,678. Pending Sales increased 16.7 percent
to 1,336. Inventory grew 4.5 percent to 4,311 units.
Prices were still soft as Median Sales Price was down 0.6 percent to $165,000. Days
on Market decreased 21.2 percent to 67 days. Months Supply of Inventory was
down 4.8 percent to 4.0 months, indicating that demand increased relative to
supply.
With job creation increasing and mortgage rates remaining low, the pull toward
homeownership is expected to continue. Yet housing starts have been drifting
lower, and some are beginning to worry that a more serious housing shortage could
be in the cards if new construction and building permit applications continue to
come in lower in year-over-year comparisons while demand remains high.
Homebuilder confidence suggests otherwise, so predictions of a gloomy future
should be curbed for the time being.
Information courtesy of CMLS*
