Buyer Demand Continues To Outpace Housing Supply

The price of any item is determined by the supply of that item, and the market demand. The National Association of Realtors (NAR) recently released their latest Existing Home Sales Report.

INVENTORY LEVELS & DEMAND

Sales of existing homes rose 3.2% from May, outpacing year-over-year figures for the ninth consecutive month. Total unsold housing inventory is at a 5.0-month supply.

This is down from May’s 5.1-month supply and remains below the 6 months that is needed for a historically normal market.

Consumer confidence is at the highest level in over a decade. Pair that with interest rates still around 4%, new programs available for down payments as low as 3%, and you have an attractive market for buyers.

Buyer demand for housing surged to it’s highest level since June 2013.

PRICES RISING

June marked the 40th consecutive month of year-over-year price gains as the median price of existing homes sold rose to $236,400 (up 6.5% from 2014).

SO WHAT DOES THIS MEAN?

The chart below shows the impact that inventory levels have on home prices.

March2015-16

NAR’s Chief Economist, Lawrence Yun gave some insight into the correlation:

"Limited inventory amidst strong demand continues to push home prices higher, leading to declining affordability for prospective buyers."

NAR’s President, Chris Polychron added:

"The demand for buying has really heated up this summer, leading to multiple bidders and homes selling at or above asking price."

BOTTOM LINE

If you are debating putting your home on the market in 2015, now may be the time. The number of buyers ready and willing to make a purchase is at the highest level in years. Let's get together to discuss your options.


ac4ada1a a471 4a55 944c 5f80d2be0fc0 7a16f83e cd65 4955 9c75 db1186670939 7b23aa1f 043c 447c b0af b916ce043f3a f2369501 5732 4e21 8b36 683ccd0fab4f 1b09981f 6751 4321 be92 27b327eb0a64 2a22560d 6866 4548 9054 93d52edf0145 5b0e805e b4a5 4996 ad67 670a095544a0 60548906 cfbf 44fd 8275 13e00e3fd33b 3ff6b503 10b6 49fa b65a d5587c912913 50e12065 8188 4f4b b795 c31318727c32 48e60c45 3559 4ad8 8719 99e385e9dff9 9b2b96e8 74fd 4620 a2c5 0f32f125e23c ca6f0348 1811 4293 83e9 1498d92c8613 7a6ae5d0 fadf 4527 b17f ca35a7f4ede3 d1e52a45 7240 4b30 a611 e20630b04cd6 1b15c1ec bfd0 49a2 9991 8cad0c3dbb11 57c1ea88 2fea 40aa 8e0f e70fd25f437a cc41776a 5d05 4c25 943f 0a25693c2b73 e57e2ef4 9f76 4e23 b77f 90a12c38a013 80ae4b72 0561 454c becd 3695d5972402 ced46c62 637d 42c6 8562 20978fcfb786 2b38c0a2 d23c 4cb0 8ec3 4494e8611c20 cbd27cba 5ade 4d60 b0f4 1f5b4f5c5b0a