June 12, 2016 Posted by Matt

Nationwide Home Sales

Nationwide home sales may be volatile from month-to-month, however, on an annual basis, they are almost the same as they were last year.  The country is on track for 5.2 million home sales.  There continues to be a steady stream of buyers in the market.  As a result, the industry expects sales to hold steady throughout the year and industry expert, Lawrence (Chief Economist for NAR) expects sales to end up pretty close to where we finished the year last year.

The Good and The Bad:

The biggest issue affecting the market continues to be the lack of inventory which remains at historically low levels.  There were only 2 million homes on the market at the end of March which is a 4.5 months’ supply according to the latest market reports released by the National Association of Realtors (NAR).  For sellers, the lack of inventory also means speedier sales.  The median number of days on market has fallen from 98 days to 46 days over the past four years, which is more than a 50 percent reduction.

Inventory Impact:

The limited inventory has impacted first time home buyers the most.  Traditionally they make up 40 percent of the market.  Today first-time home buyers only represent 30 percent of the market.

New Construction Implications:

New construction homes are flying off the shelf within three months.  New home builders entering the market have a great opportunity to take advantage of the limited inventory.  If there is an influx of inventory into the market, there will be an increase in real estate transactions and moderate home price growth.

Bottom Line:

With low mortgage rates and the upward trend in home prices, it’s a great time to buy a home.  If you are considering making a home purchase in Southwest Florida, let me be your guide!

About Matt Klinowski
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