Housing Update: Demand Up, Supply Down, Prices Increasing
Re posted from Keeping Current Matters: http://www.keepingcurrentmatters.com/2015/05/14/housing-update-demand-up-supply-down-prices-increasing/
Earlier this week, the
National Association of Realtors (NAR) released their latest
quarterly report. The report covered three important aspects of the housing market:
- Buyer Demand
- Supply of Housing Inventory
- Single Family Residential Prices
Today, we want to break down the highlights of the report along with
several quotes from Lawrence Yun, the Chief Economist at NAR.
Buyer Demand
Total existing-home sales (which include single family and condo)
were at an annual rate of 4.97 million in the first quarter of 2015.
This represents a number which is 6.2 percent higher than the pace
during the first quarter of 2014.
Yun: "Sales activity to
start the year was notably higher than a year ago, as steady hiring and
low interest rates encouraged more buyers to enter the market."
Supply of Housing Inventory
There were 2 million existing homes available for sale at the end of
the first quarter of 2015 which represents a 4.6 months’ supply of
inventory which is down from 4.9 months a year ago. A healthy balance of
supply between buyers and sellers is 6 to 7 months.
Yun: "With supply remaining
tight—especially at the entry-level price range—buyers will need the
expertise and local market insight of a Realtor® to help them through
each intricate step of the buying process."
Single Family Residential Prices
Home prices accelerated in 148 out of 174 metro areas (85%) during
the first quarter of 2015 and the number of areas experiencing
double-digit price appreciation doubled compared to last quarter.
Compared to last quarter, the number of regions experiencing
double-digit price appreciation doubled.
The national median existing single-family home price in the first
quarter was $205,200, compared to $191,100 in first quarter of 2014.
This represents a 7.4% increase year-over-year.
Yun: “…stronger demand
without increasing supply led to faster price growth in many
markets…Homeowners throughout the country have enjoyed accumulating
household wealth through the steady rise in home values in the past few
years."
Bottom Line
Whether you are thinking about buying your first home or selling your
current residence to buy the home of your dreams, meet with a
professional in your market to discuss how the numbers above have
affected your neighborhood's prices.