Just like last year at this time, prospective home buyers should expect a competitive housing market for the next several months. With payrolls trending upward and unemployment trending downward month after month in an extensive string of positive economic news, demand remains quite strong. Given the fact that gradually rising mortgage rates often infuse urgency to get into a new home before it costs more later, buyers need to remain watchful of new listings and make their offers quickly. New Listings were down 23.0 percent for single family homes and 12.5 percent for Condo/TIC/Coop properties. Pending Sales increased 12.1 percent for single family homes but decreased 2.6 percent for Condo/TIC/Coop properties. The Median Sales Price was up 9.8 percent to $1,620,000 for single family homes and 8.2 percent to $1,265,000 for Condo/TIC/Coop properties. Months Supply of Inventory decreased 33.3 percent for single family units and 21.4 percent for Condo/TIC/Coop units. Although home sales may actually drop in year-over-year comparisons over the next few months, that has more to do with low inventory than a lack of buyer interest. As lower days on market and higher prices persist year after year, one might rationally expect a change in the outlook for residential real estate, yet the current situation has proven to be remarkably sustainable likely due to stronger fundamentals in home loan approvals than were in place a decade ago.
Courtesy of San Francisco Association of Realtors