It’s tempting to confuse market normalization with a possible slowdown. But those equipped with high-quality MLS data know better. As mortgage delinquencies fade, banks are listing bargain-priced product less often. That means investor activity – which accounts for a substantial market share – is moderating. That’s not to say that rates and prices aren’t still attractive to owner- occupant buyers. They most certainly are. Some short-term volatility is expected as part of a normal market readjustment.
New Listings were down 17.1 percent for single family homes and 18.4 percent for Condo/TIC/Coop properties. Pending Sales increased 13.4 percent for single family homes and 11.5 percent for Condo/TIC/Coop properties.
The Median Sales Price was up 35.7 percent to $1,086,500 for single family homes and 24.9 percent to $937,000 for Condo/TIC/Coop properties. Months Supply of Inventory decreased 29.4 percent for single family units and 36.4 percent for Condo/TIC/Coop units.
The economy has more or less shuffled along, despite some climate-induced surprises to job growth and new construction. There is no denying the fact that we’ve now seen 47 straight months of private job growth, creating 8.5 million new payrolls. There’s still work to be done. Thankfully, with such low inventory levels, many builders are bullish on new construction. The spring market is budding, and it should be an interesting one.
|February 2014||Median Price||Days on Market|
|Single-Family Homes||$1,086,500||38 Days|
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