Economic News In Real Estate
Existing Home Sales
Sales of existing single-family homes, townhomes, condominiums and co-ops grew 3.2 percent in September to hit an annual rate of 5.47 million, pushing sales to their highest pace since June, according to last week’s report from the National Association of Realtors. Compared to last year, September’s sales were 0.6 percent over December 2015’s pace of 5.44 million. September’s gains marked the end of a two-month slump, said NAR Chief Economist Lawrence Yun, who added the major driver for the increase was first-time buyers, which represented a 34 percent share of the September’s homebuyers. “The home search over the past several months for a lot of prospective buyers, and especially for first-time buyers, took longer than usual because of the competition for the minimal amount of homes for sale,” Yun explained. “Most families and move-up buyers look to close before the new school year starts. Their diminishing presence from the market towards the end of summer created more opportunities for aspiring first-time homeowners to buy last month.” Looking at affordability, September’s median price for existing homes of all types grew 5.6 percent to hit $234,200, marking the 55th straight month of year-over-year price gains. In terms of supply, the total number of homes for sale at the end of September rose 1.5 percent to 2.04 million existing homes available for sale, representing a 4.5-month inventory of homes for sale. Inventory has been an ongoing concern according to Yun. “Inventory has been extremely tight all year and is unlikely to improve now that the seasonal decline in listings is about to kick in,” he said. “Unfortunately, there won't be much relief from new home construction, which continues to be grossly inadequate in relation to demand.”
Don Fleming has been practicing real estate for more than 10 years , with the primary goal to become a trusted advisor for his clients. He specializes in new construction, where he leverages his exten....
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