The U.S. economy has been pretty even so far this year. Usually when new One-Year Change in figures are released, they paint a pretty picture worthy of putting above the fireplace in that purchased new home. Recently, some numbers for the first quarter were adjusted to show a slight contraction in the economy. The initial response from Wall Street was unfavorable, but the correction itself is truly a mere blip. Nobody is predicting that the market will take a sudden turn.
New Listings were down 22.9 percent for single family homes and 19.3 percent for Condo/TIC/Coop properties. Pending Sales decreased 4.2 percent for single family homes and 1.4 percent for Condo/TIC/Coop properties.
The Median Sales Price was up 28.4 percent to $1,400,000 for single family homes and 19.7 percent to $1,125,000 for Condo/TIC/Coop properties. Months Supply of Inventory decreased 16.7 percent for single family units and 25.0 percent for Condo/TIC/Coop units.
One interesting effect of a weaker-than-expected economy is that the Federal Reserve does not seem ready to raise short-term interest rates during summer, as some had suggested might happen. New projections indicate that rates will remain the same until September at the earliest. The dominant storylines in housing are decidedly not negative these days. Instead, you’re more likely to see top sales and luxury living highlighted than the woes of foreclosures and short sales.