With 2015 near, some are pontificating about a potential change in interest rates. With virtually no inflation, rates will likely remain low for most of 2015 but could flirt with 5.0% toward the end of next year. Construction permits and housing starts have upward momentum, which is news in some areas but familiar in others. Prices should continue their ascent but at a tempered pace compared to recent years, which helps preserve affordability for first-time buyers.
New Listings were down 35.7% for single family homes and 22.5% for Condo/TIC/Coop properties. Pending Sales decreased 7.6% for single family homes and 20.8% for Condo/TIC/Coop properties.
The Median Sales Price was up 20.2% to $1,150,000 for single family homes and 24.1% to $1,025,000 for Condo/TIC/Coop properties. Months Supply of Inventory decreased 22.2% for single family units and 16.7% for Condo/TIC/Coop units.
It has largely been another recovery year in 2014, yet mortgage credit and student debt remain obstacles even as the U.S. leads the global economy toward recovery. As this recovery matures, many metrics are approaching a healthy balancing point. Rates have remained much lower than most forecasters expected, and inventory levels finally started rising in most areas as sellers generally listed more properties as a result of stronger prices. Job growth should continue and wage growth is expected to pick up.
|November 2014||Median Price||Days on Market|
|Single-Family Homes||$1,150,000||32 Days|
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