Residential real estate is experiencing its best year since the recession. Housing demand is healthy, and that is expected to continue until the end of the year. Home sales are actually set to have their best national showing since 2006. More of the same is anticipated in 2016, but inventory and affordability challenges coupled with mortgage rate increases will likely keep any sort of monster growth in check. This should be a good thing for keeping home prices from increasing too rapidly to maintain economic stability.
New Listings were down 6.3 percent for single family homes and 4.2 percent for Condo/TIC/Coop properties. Pending Sales decreased 17.1 percent for single family homes but increased 6.0 percent for Condo/TIC/Coop properties. The Median Sales Price was up 15.0 percent to $1,295,000 for single family homes and 10.3 percent to $1,125,000 for Condo/TIC/Coop properties. Months Supply of Inventory decreased 6.3 percent for single family units but remained flat for Condo/TIC/Coop units.
Unemployment rates across the nation changed little last month, which bodes well for an increase in buying activity. The national jobless rate was 5.0 percent in October, which was 0.7 percent lower than the year prior. Although housing and employment data are quite positive at this juncture, it is still certainly possible for listings and sales to be down in year-over-year comparisons. Bad weather and the mix of housing available to buyers tend to have a greater effect on trends at the end of the year than during the midsummer months.