The primary story, both nationally and in local submarkets, is a dwindling One-Year Change in months’ supply of inventory. The cure, of course, is more inventory. But new construction has been lagging during this opportune moment, and sellers of existing homes are not yet hitting the market in droves. The heart of the selling season has yet to begin, so we’re still optimistically watching for an increase in activity in the coming months.
New Listings were down 18.5 percent for single family homes and 9.1 percent for Condo/TIC/Coop properties. Pending Sales decreased 9.4 percent for single family homes but increased 4.7 percent for Condo/TIC/Coop properties.
The Median Sales Price was up 26.5 percent to $1,410,000 for single family homes but decreased 0.5 percent to $1,095,000 for Condo/TIC/Coop properties. Months Supply of Inventory decreased 11.1 percent for single family units but was up 5.9 percent for Condo/TIC/Coop units.
National housing starts were up by 10.8 percent at the end of 2015 when compared to 2014, and the unemployment rate is holding low and steady at or near 4.9 percent. Meanwhile, mortgage rates continue to astound below 4.0 percent and we have witnessed an unprecedented 70 consecutive months of private-sector job growth. As consumers navigate their options, competition for the best available properties should be profound, especially if the market remains hobbled by a lack of supply.