We are in the thick of an exciting period of home buying and selling with sale prices that are closer to the asking price, depending on the factors of the home and submarket in question. It was widely predicted that we would see healthy sales activity during the second quarter of 2016, and the market has not disappointed. We are seeing healthy sales, but signs of fatigue exist in several areas. Is this a sign of the market shifting or just a blip in the market fueled by an uncertain political and economic climate. It is too soon to tell, but this may be just the time to buy your new home with less competition.
The Median Sales Price was down 1.4% to $1,380,000 for single family homes and 1.1% to $1,100,000 for Condo/TIC/Coop properties. Months Supply of Inventory increased 5.0% for single family units and 35.0% for Condo/TIC/Coop units.
Although inventory is still being stretched thin in many areas, low mortgage rates coupled with higher wages have built a relatively sturdy housing marketplace. How long that can continue without fresh supply remains an important question, but conditions are seemingly good enough for serious buyers. With the current slow state of new construction for non-rental households, the road ahead could be tricky if demand remains high.
Read the full report here: SFAR MarketFocus – May 2016