As the residential real estate market rolls through fall, selling activity has remained robust. Activity typically wanes this time of year, but not in 2015. The primary reason is the belief that mortgage rates will be increasing in the near future, which has triggered increased buyer activity. In addition, there is a general confidence in residential real estate that has been missing for nearly a decade. Many sellers, who have been waiting years to make a move, feel their home’s value has finally increased enough to justify selling. This is good news because buyer demand is currently overwhelming!
Below are a few year-to-date statistics comparing 2014 to 2015 (through September):
_____________ YTD 2014 YTD 2015 +/-
New listings 61,734 65,182 +5.6%
Closed Sales 38,185 44,138 +17.3%
Median Sales Price $206,000 $220,000 +6.8%
Month’s Supply of 4.6 3.4 -26.1%
Homes for sale
As you can see, closed sales are outpacing new listings. The result is exhibited by the plummeting Months Supply of Homes for sale. Fortunately, the steady increase in the median sales price will enable more home owners to sell their homes. We are still recovering from the real estate crash, but the foundation has been laid and the market is as healthy as it has been in years. This recovery takes time and there will be frustration for buyers due to the low listing inventory. That being said, in the long term all home owners will benefit from a strong and sustainable residential real estate market.