As anticipated at the outset of the year, demand has remained high through the first three quarters of 2016, propping up sales and prices despite heavy reductions in inventory and months of supply across the country. With rental prices and employment opportunities in a consistent climb, year-over-year increases in home buying are probable for the rest of the year but not guaranteed.
New Listings were down 1.5% for single family homes and 11.6% for Condo/TIC/Coop properties. Pending Sales decreased 9.0% for single family homes and 2.3% for Condo/TIC/Coop properties.
The Median Sales Price was up 5.4% to $1,216,875 for single family homes but decreased 2.6% to $1,012,500 for Condo/TIC/Coop properties. Months Supply of Inventory increased 4.2% for single family units and 14.8% for Condo/TIC/Coop units.
In general, today’s demand is driven by three factors: Millennials are reaching prime home-buying age, growing families are looking for larger homes and empty nesters are downsizing. However, intriguingly low interest rates often prompt refinancing instead of listing, contributing to lower inventory. Recent studies have also shown that short-term rentals are keeping a collection of homes off the market.
Read the full report here: sfar-marketfocus-september-2016