Homebuyers & Sellers Feeling The Heat This Summer
Spring has always been traditionally known as the busiest season of the real estate market. However, it’s a hot summer and the real estate industry is busier than ever right now. While the National Association of Realtors® (NAR) reported that pending home sales slowed in May and declined year-over-year for the first time in almost two years, it wasn’t for lack of buyer interest.
Buyer demand held very firm this spring and real estate sales professionals worked overtime with homes that went under agreement in a matter of days, and deals that entered into serious bidding wars. Lawrence Yun, NAR chief economist said in a recent release, “Realtors are acknowledging with increasing frequency lately that buyers continue to be frustrated by the tense competition and lack of affordable homes for sale in their market.”
Home prices continue on an upward trend as well. Yun added, “There are simply not enough homes coming onto the market to catch up with demand and to keep prices more in line with inflation and wage growth.”
The uptick in demand this spring pushed the median sales price to an all-time high due to the lagging supply of homes for sale. According to NAR, the average sales price in May surpassed the peak median sales price set last June. The median existing-home price for all housing types in May was up 4.7 percent from May 2015 which marks the 51st consecutive month of year-over-year gains. Unsold inventory is at a 4.7-month supply at the current sales pace. Six months of inventory is considered a balanced market.
Home sellers who missed the early spring rush won’t be making a mistake putting their home on the market now. New home buyers are still anxious to take advantage of lower interest rates and move into their new home before school starts in September. Look to the information here to review the inventory trends in your area.
For potential home sellers concerned about lack of equity or opportunity, call a Coldwell Banker Residential Brokerage affiliated sales professional who will run the numbers for you. With activity like this, you should already be packing your bags to make your move.
For more information about real estate trends in your community, please contact a Coldwell Banker Residential Brokerage real estate professional today.