Despite a lower than normal housing supply and slightly stricter credit standards, home prices are rising in most areas. The job market has been strengthening, although wages have not yet caught up to the pricing gains in the current market. Buying a home is still far more affordable than it has been historically -- stable and continuously lower interest rates are substantial contributors. Looking forward, an increasing inventory of homes will give qualified buyers more choices, but with the overall supply still below normal levels buyers may feel the pressure to act sooner than later.
Summer 2014 Recap -
New Listings were down 0.5 percent for single-family homes but increased 3.7 percent for townhouse-condo properties. Pending Sales increased 1.5 percent for single-family homes but decreased 2.9 percent for townhouse-condo properties.
The Median Sales Price was down 1.8 percent to $216,000 for single-family homes but increased 15.3 percent to $198,000 for townhouse-condo properties. Months Supply of Inventory decreased 1.9 percent for single-family units and 18.3 percent for townhouse-condo units.
What To Expect -
The U.S. Department of Commerce reported that GDP grew at a 4.0 percent annual rate in the second quarter and that the first quarter was less bad than previously thought. Consumer spending in the first quarter rose 2.5 percent, which is encouragingly in tandem with savings rates. Increased consumer spending means more demand for goods and labor; increased savings rates means more resources for downpayments. With rates still low, rents still rising and private job growth accelerating, now is looking like an advantageous time for both buyers and sellers to enter the housing market.
As always, the Signature Sales Team is here to answer any questions you may have. Give us a call at 802-872-8881!