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.
- Closed Sales decreased 8.9 percent for Detached homes and 2.9 percent for Attached homes.
- Pending Sales increased 11.8 percent for Detached homes and 2.7 percent for Attached homes.
- The Median Sales Price was up 11.9 percent to $705,000 for Detached homes and 7.3 percent to $440,000 for Attached homes.
- Days on Market decreased 11.8 percent for Detached homes and 4.5 percent for Attached homes.
- Supply decreased 32.4 percent for Detached homes and 27.8 percent for Attached homes.
Although the unemployment rate remains unchanged at its favorable national 4.4 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 firsttime buyers scramble to get offers in at an increasing pace.