March 2017
We can comfortably consider the first quarter to have been a good start for
residential real estate in 2017. There was certainly plenty to worry over when the
year began. Aside from new national leadership in Washington, DC, and the policy
shifts that can occur during such transitions, there was also the matter of
continuous low housing supply, steadily rising mortgage rates and ever-increasing
home prices. Nevertheless, sales have held their own in year-over-year comparisons
and should improve during the busiest months of the real estate sales cycle.
New Listings were up 18.0 percent to 1,881. Pending Sales increased 16.6 percent
to 1,402. Inventory grew 1.2 percent to 4,234 units.
Prices moved higher as Median Sales Price was up 1.6 percent to $157,500. Days
on Market decreased 12.6 percent to 83 days. Months Supply of Inventory was
down 9.1 percent to 4.0 months, indicating that demand increased relative to
supply.
The U.S. economy has improved for several quarters in a row, which has helped
wage growth and retail consumption increase in year-over-year comparisons.
Couple that with an unemployment rate that has been holding steady or dropping
both nationally and in many localities, and consumer confidence is on the rise. As
the economy improves, home sales tend to go up. It isn't much more complex than
that right now. Rising mortgage rates could slow growth eventually, but rate
increases should be thought of as little more than a byproduct of a stronger
economy and stronger demand.
Information courtesy of CMLS*
