For a moment this summer, home sales fell short of expectations. The real estate market’s red-hot performance cooled off but rebounded in June, when sales of single-family homes rose by 1.4%.
Single-family home sales, in fact, jumped by nearly 20% on an annual basis during this period. Sales of condos exploded to 56.5% as well.
Nationally, home-buying activity picked up in three of the four major regions.
Supply is one of the driving factors. Although modest, improving supply is fueled by more housing projects and increased new preowned home listings. Housing inventory is up by 3.3%, but listings lagged behind last year’s numbers. At the current rate, there’s about two and half months’ worth of supply. In addition, homes stay on the market for about 17 days on average. Nearly 90% of all homes sold in June were snapped off the market within a month.
As expected, home appreciation is on the move too. Today, home appreciation is up at a rate of nearly 24% year over year. The likelihood of home price declines is low given today’s tight inventory, which is expected to sustain at current levels for the foreseeable future.
First-time homebuyers accounted for about 31% of sales while investors and second-home buyers made up about 14% of sales.
Regardless of your status as a first- or second-time homebuyer, we can help you navigate today’s fast-moving market. As you know, buying a home is a unique challenge given the state of the economy, competitive borrowing terms and housing inventory.
Yet, we have the tools and expertise to help you accomplish your every goal. Please contact us to learn more about your options and to gain insights into the local market. With the right loan program and team in place, you can realize your goal of homeownership despite the challenges.