Although low supply and tight credit standards are still hurdles to recovery, prices continue to rise in most local areas. Job growth has strengthened lately, but wage growth has not kept pace with the price gains we have seen. Buoyed by stable and continuously lower interest rates, affordability is still historically high yet below its all-time peak. Rising inventory levels will lead to more choices for qualified buyers, but as the summer reaches toward fall, the prospect of more homes coming on the market begins to wane.
New Listings were down 14.3 percent for single family homes and 6.6 percent for Condo/TIC/Coop properties. Pending Sales decreased 11.6 percent for single family homes and 17.2 percent for Condo/TIC/Coop properties.
The Median Sales Price was up 23.5 percent to $1,077,500 for single family homes and 11.1 percent to $944,500 for Condo/TIC/Coop properties. Months Supply of Inventory decreased 19.0 percent for single family units and 21.7 percent for Condo/TIC/Coop units.
The U.S. Department of Commerce reported that GDP grew at a 4.0 percent annual rate in the second quarter and that the first quarter was less bad than previously thought. Consumer spending in the first quarter rose 2.5 percent, which is encouragingly in tandem with savings rates. Increased consumer spending means more demand for goods and labor; increased savings rates means more resources for downpayments. With rates still low, rents still rising and private job growth accelerating, it’s becoming more and more difficult to side with the housing perma-bears.
|July 2014||Median Price||Days on Market|
|Single-Family Homes||$1,077,000||31 Days|
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