The primary story, both nationally and in local submarkets, is a dwindling 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 up 2.3 percent for Single Family homes and 3.2 percent for Townhouse-Condo properties. Pending Sales increased 12.6 percent for Single Family homes and 6.3 percent for Townhouse-Condo properties.
The Median Sales Price was up 5.3 percent to $595,000 for Single Family homes and 9.0 percent to $398,000 for Townhouse-Condo properties. Months Supply of Inventory decreased 29.0 percent for Single Family units and 32.1 percent for Townhouse-Condo 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.