Halfway through 2016, residential real estate markets are performing as predicted at the beginning of the year. Sales and prices have been going up in most areas, while the number of homes for sale and total months’ supply of inventory have been going down. Meanwhile, many sellers have been getting a higher percentage of their asking price, and supply continues to struggle to meet demand. The message may be repetitive, but it is largely positive. New Listings were down 20.9 percent for single family homes but increased 12.8 percent for Condo/TIC/Coop properties. Pending Sales decreased 0.9 percent for single family homes and 16.0 percent for Condo/TIC/Coop properties.
The Median Sales Price was up 3.8 percent to $1,350,000 for single family homes and 7.0 percent to $1,177,500 for Condo/TIC/Coop properties. Months Supply of Inventory decreased 5.0 percent for single family units but was up 57.9 percent for Condo/TIC/Coop units.
The national unemployment rate recently dropped 0.3 percent to 4.7 percent, but some states felt more of a pinch in their own figures. Similarly, the low inventory situation is showing signs of strain in markets where there are few homes for purchase. With an interest rate increase still in the cards this year, combined with the American political landscape and global economic events, a cooldown could occur by winter. Presently, however, summery growth prevails as many locales are reaching near-record prices not seen in more than a decade.