|Housing Market Holds Steady in February
17 Mar 2017 -
Housing indicators show a steady housing market that sets the stage for future growth throughout the year.
The start of the year ushered in a wave of good news about a hot stock market, higher wages and an active home sales environment. At the same time, housing prices have continued to rise, and the low inventory situation and affordability crunch has been particularly hard on first-time buyers struggling to get into the market. Nevertheless, buyer activity is easily outpacing seller activity in much of the country, culminating in relatively quick sales and low supply.
Demand definitely remained strong this month. New Listings increased 0.7 percent to 13,232. Pending Sales were up 8.7 percent to 10,563. Inventory levels shrank 14.2 percent to 34,222 units.
Prices continued to gain traction. The Median Sales Price increased 8.1 percent to $186,500. Days on Market was down 14.5 percent to 71 days. Sellers were encouraged as Months Supply of Inventory was down 22.7 percent to 3.4 months.
Unemployment has reached pre-recession levels, and Americans remain optimistic about finding quality employment. This matters because job growth and higher paychecks fuel home purchases. Unfortunately, that won't matter for potential buyers if price appreciation outpaces income growth and if mortgage rates continue their upward trend. Sellers are getting a generous number of offers in this market. The worry for sellers then becomes that there will not be a generous number of homes to choose from when they become buyers.
Click here to view the report from February.