The booming U.S. economy continues to prop up home sales and new listings in
much of the nation, although housing affordability remains a concern. Historically,
housing is still relatively affordable. Although Freddie Mac recently reported that the
30-year fixed rate is at its highest average in seven years, reaching 4.94 percent,
average rates were 5.97 percent ten years ago, 6.78 percent 20 years ago and 10.39
percent 30 years ago. Nevertheless, affordability concerns are causing a slowdown
in home price growth in some markets, while price reductions are becoming more
New Listings were down 9.6 percent to 1,094. Pending Sales increased 7.4 percent
to 1,001. Inventory grew 6.9 percent to 3,475 units.
Prices moved higher as Median Sales Price was up 3.1 percent to $165,000. Days
on Market decreased 11.6 percent to 61 days. Months Supply of Inventory remained
flat at 3.0, indicating a stabilizing supply-demand balance.
The Bureau of Labor Statistics recently reported that the national unemployment
rate was at 3.7 percent. Low unemployment has helped the housing industry during
this extensive period of U.S. economic prosperity. Home buying and selling activity
relies on gainful employment. It also relies on demand, and builders are showing
caution by breaking ground on fewer single-family home construction projects in the
face of rising mortgage rates and fewer showings.
Information courtesy of CMLS*