The curtain closes and the first half of 2015 is a finished act. Monthly market analysis helps nudge the real estate story forward for a final bow. The orchestra (consumers) and conductor (the REALTOR®) are thanked. Metropolitan operas, er, markets across the country continue to improve and further perform at peaks not seen in years. Bad memories from that one lousy show known as the Great Recession are pushed even further into the past.
New Listings were down 19.1 percent for single family homes and 26.2 percent for Condo/TIC/Coop properties. Pending Sales increased 10.5 percent for single family homes but decreased 9.1 percent for Condo/TIC/Coop properties. The Median Sales Price was up 10.7 percent to $1,301,000 for single family homes and 15.2 percent to $1,100,000 for Condo/TIC/Coop properties.
Months Supply of Inventory decreased 28.6 percent for single family units and 23.8 percent for Condo/TIC/Coop units. Having six months of 2015 data in the books is great, but it is still just intermission at this halfway point of the year. Forecasting market trends can be as dicey as the weather, but with interest rates managing to remain low into the summer months, the outlook is promising, even if rates go up later in the year. Metrics like inventory and percent of list price received at sale are two of the better understudies to watch this year.
The 3 percent down payment programs from Fannie Mae and Freddie Mac should help potential new homeowners, but in a recent member survey by the Independent Community Bankers of America, three-fourths of respondents stated that regulatory burdens are hurting their ability to loan money. The wider economy shows slight wage increases and gas prices near five-year lows but rising along with extended daylight and buyer demand. These various economic pushes and pulls can turn stagnant markets into exciting ones. It’s all in how you look at it.
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