Market Update for June 2017
Here is your June 2017 Real Estate Market Update.
There has been a general slowdown in sales across the country, and this cannot be blamed on negative economic news. Unemployment remains low and wage growth, though nothing to overly celebrate, has held steady or increased for several years in a row. There is strong demand for home buying, emphasized by higher prices and multiple offers on homes for sale in many submarkets. As has been the case for month after month – and now year after year – low inventory is the primary culprit for any sales malaise rather than lack of offers.
New Listings were down 8.2 percent for Single Family homes and 8.3 percent for Townhouse-Condo properties. Pending Sales decreased 37.9 percent for Single Family homes and 47.0 percent for Townhouse-Condo properties.
The Median Sales Price was up 5.4 percent to $680,000 for Single Family homes and 9.3 percent to $442,500 for Townhouse-Condo properties. Months Supply of Inventory decreased 8.8 percent for Single Family units and 7.4 percent for Townhouse-Condo units.
With job creation increasing and mortgage rates remaining low, the pull toward homeownership is expected to continue. Yet housing starts have been drifting lower, and some are beginning to worry that a more serious housing shortage could be in the cards if new construction and building permit applications continue to come in lower in year-over-year comparisons while demand remains high. Homebuilder confidence suggests otherwise, so predictions of a gloomy future should be curbed for the time being.
The report below justifies these numbers as the “number of days on market,” continues to decrease. Multiple offers and increase in prices continue to make the buyer’s market very competitive. If the prediction for low housing starts pans out, then prices here in the Southern California market are going to continue to increase.
The one good thing that has come out of this market is that the lending rules have become more normalized more traditional and every buyer is not being scoured clean of any fault in order to get a loan. Qualifying is still important but the lender will no longer ask you for your first born child.
Call me if you are thinking about buying or selling real estate.