August 2019
As the summer draws to a close, multiple opposing factors and trends are
competing to define the direction of the real estate market. After the Federal
Reserve lowered its benchmark interest rate on July 31, 30-year mortgage rates
continued to decline, approaching all-time lows last seen in 2016. Yet most experts
agree these reductions are unlikely to bring sufficient relief, at least in the short term,
for first-time home buyers. The lack of affordable inventory and the persistence of
historically high housing prices continue to affect the housing market, leading to
lower-than-expected existing home sales at the national level.
New Listings were up 8.3 percent to 1,620. Pending Sales increased 6.2 percent to
1,346, the eighth consecutive month of year-over-year gains. Inventory grew 8.0
percent to 3,425 units.
Prices moved higher as Median Sales Price was up 11.8 percent to $185,000. Days
on Market decreased 5.7 percent to 50 days. Months Supply of Inventory was up
3.6 percent to 2.9 months, indicating that supply increased relative to demand.
As many homeowners refinanced their homes to take advantage of declining
interest rates, consumer confidence in housing was reported to be at historically
high levels. Even so, real estate professionals will need to monitor the market for
signs of continued imbalances. Although the inventory of affordable homes at this
point remains largely stable, it is stable at historically low levels, which may continue
to push prices higher and affect potential buyers across the U.S.
Information courtesy of CMLS*
