Housing markets across the nation are most assuredly active this summer, and
buyer competition is manifesting itself into several quick sales above asking price.
While the strength of the U.S. economy has helped purchase offers pile up, the
Fed recently increased the federal funds rate by 0.25 percent, marking the second
rate hike this year and seventh since late 2015. Although the 30-year mortgage
rate did not increase, buyers often react by locking in at the current rate ahead of
assumed higher rates later. When this happens, accelerated price increases are
possible, causing further strain on affordability.
• Single Family Closed Sales were down 4.6% to 8,827.
• Townhouse-Condo Closed Sales were down 1.7% to 2,523.
• Adult Communities Closed Sales were up 1.6% to 758.
• Single Family Median Sales Price increased 4.6% to $340,000.
• Townhouse-Condo Median Sales Price increased 0.4% to $260,000.
• Adult Communities Median Sales Price increased 10.5% to $210,000.
• Townhouse-Condo Closed Sales were down 1.7% to 2,523.
• Adult Communities Closed Sales were up 1.6% to 758.
• Single Family Median Sales Price increased 4.6% to $340,000.
• Townhouse-Condo Median Sales Price increased 0.4% to $260,000.
• Adult Communities Median Sales Price increased 10.5% to $210,000.
Inventory may be persistently lower in year-over-year comparisons, and home prices are still more likely to rise than not, but sales and new listings may finish the summer on the upswing. The housing supply outlook in several markets is beginning to show an increase in new construction and a move by builders away from overstocked rental units to new developments for sale. These are encouraging signs in an already healthy marketplace.