Home prices across the U.S. are reaching all-time highs, prompting worry over another boom-and-bust scenario like we experienced roughly ten years ago. Yet, as we glance across the state of residential real estate, what is clear compared to the last extended run of price increases is that lending standards are now much stronger than they were before. Incomes must be verified, a reasonable amount of money must be paid toward the home prior to purchase and a more stringent loan approval process is in place to prevent a repeat performance of the Great Recession.
New Listings were down 7.4 percent for single family homes and 18.4 percent for Condo/TIC/Coop properties. Pending Sales decreased 4.0 percent for single family homes but increased 6.3 percent for Condo/TIC/Coop properties.
The Median Sales Price was up 12.0 percent to $1,512,338 for single family homes and 10.9 percent to $1,200,000 for Condo/TIC/Coop properties. Months Supply of Inventory decreased 24.0 percent for single family units and 25.0 percent for Condo/TIC/Coop units.
In addition to a stronger base upon which to conduct real estate transactions, the overall economy is in better shape than it was a decade ago. More jobs are available, unemployment is relatively low and workers have more faith in their wages and the potential for wage increases. Although we continue to battle an inventory shortage in much of the country, optimism remains high for a successful summer for buying and selling homes.
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