June 2019
As was widely expected, the Federal Reserve did not change the target range for
the federal funds rate – currently set at 2.25 to 2.5 percent – during their June
meeting. Although the economy is still performing well due to factors such as low
unemployment and solid retail sales, uncertainty remains regarding trade tensions,
slowed manufacturing and meek business investments.
New Listings were up 0.9 percent to 1,656. Pending Sales increased 12.3 percent to
1,443. Inventory grew 3.0 percent to 3,346 units.
Prices moved higher as Median Sales Price was up 8.6 percent to $190,000. Days
on Market decreased 5.5 percent to 52 days. Months Supply of Inventory remained
flat at 2.9, indicating a stabilizing supply-demand balance.
In terms of relative balance between buyer and seller interests, residential real estate
markets across the country are performing well within an economic expansion that
will become the longest in U.S. history in July. However, there are signs of a slowing
economy. The Federal Reserve considers 2.0 percent a healthy inflation rate, but the
U.S. is expected to remain below that this year. The Fed has received pressure from
the White House to cut rates in order to spur further economic activity, and the
possibility of a rate reduction in 2019 is definitely in play following a string of
increases over the last several years.
Information courtesy of CMLS*
