July 2017
How long can the residential real estate market go on like this? We are about two
years into a national trend of dropping housing supply and increasing median sales
prices. There are some regional variations to the story, but the shift to a
predominantly seller's market is mostly complete. Multiple-offer situations over
asking price are commonplace in many communities, and good homes are routinely
off the market after a single day. It is evident that a favorable economy keeps hungry
buyers in the chase.
New Listings were up 17.8 percent to 1,554. Pending Sales increased 10.8 percent
to 1,212, the seventh consecutive month of year-over-year gains. Inventory grew 8.1
percent to 4,305 units.
Prices were still soft as Median Sales Price was down 1.1 percent to $162,000. Days
on Market decreased 12.3 percent to 64 days. Months Supply of Inventory was
down 2.4 percent to 4.0 months, indicating that demand increased relative to
supply.
Although the unemployment rate remains unchanged at its favorable national 4.3
percent rate, wage growth has not been rising at the steady clip that would be
expected in an improving economy. Sales activity manages to keep churning along
despite looming shortages in new construction. Lower price ranges are starting to
feel the effects of the supply and demand gap, as first-time buyers scramble to get
offers in at an increasing pace.
Information courtesy of CMLS*
