16 May The State of The Market: Spring 2016
Spring is upon us, and with it comes real estate’s busy season. But, what should sellers and buyers expect to see in the next few months? This year, lots of growth and demand! Here’s a look at some of the real estate market trends that have emerged this season.
In a year-over-year comparison, the housing supply is down 2.2% from March 2015. This means that there is currently about a 4.5-month supply of homes. As buyer demand continues to out pace supply, we can expect to see continued price growth on new and existing homes.
Sales Rate Growth
The spring busy season gave the sales rate a boost in March. While the rate enjoyed small growth year-over-year (+1.5%) the month-over-month growth jumped just over 5%. A few other factors, including the stability of pending home sales throughout the year, should help this trend to continue.
More Pending Home Sales
In the past few months, the number of pending home sales has remained stable, with a 1.4% increase in March. However, experts expect that number to increase slightly as the rush to get into a new home before the school year starts sets in.
High demand and a tighter supply than usual is driving the median home price up. Today, the median US home price is $222,700, a 6.7% year-over-year increase from March 2015. And, March 2016 makes the 49th consecutive month with year-over-year price gains.
What trends are you noticing in home sales or traffic this spring?
Photo Jul 23, 3 04 19 PM” (CC BY 2.0) by danielmoyle