THE NATIONAL EXISTING-HOME SALES REPORT IS POSITIVE
By: David Collins Professional Realtor ERA
THE EXISTING-HOME SALES REPORT
Hello Central Ridger’s and Happy October. I hope you are enjoying the bit of a cool down outside. As I mentioned in my Post Card earlier this month, there is not a cool down in most categories in our neighborhoods and the National Housing Market is basically the same. The recently released Existing-Home Sales Report is showing inventory is shrinking while sales are keeping pace which is exactly what is happening here on The Ridge. And as we all have learned in Economics 101, when supply decreases and demand stays the same or increases, prices will increase. We are seeing that throughout the country and we are seeing this locally. A few posts ago, I mentioned, recession, now I am mentioning appreciation. Yes, I sound like a YoYo but 2019 has been basically up and down. We have had months, both locally and nationally, that were cause for concern and within a month, things turn 180 degrees. The good news is that right now, the market is very positive. Below is an explanation of what the experts are saying nationally.
The most important data revealed in this report was
not actually sales. In reality, it was the inventory of
homes for sale (supply). The report explained:
- Total housing inventory at the end of August decreased 2.6% to 1.86 million homes available for sale.
- Unsold inventory is lower than the 4.3-month figure recorded in August 2018.
- This represents a 4.1-month supply at the current sales pace.
According to Lawrence Yun, Chief Economist at NAR,
“Sales are up, but inventory numbers remain
low and are thereby pushing up
home prices.”
In real estate, there is a simple guideline that often applies here. Essentially, when there is less than a 6-month supply of inventory available, we are in a seller’s market and we will see greater appreciation. Between a 6 to 7-month supply is a neutral market, where prices will increase at the rate of inflation. More than a 7-month supply means we are in a buyer’s market and can expect depreciation in home values
If you are looking to sell, please give me a call to discuss my MARKETING STRATEGY that is proven to get you the most money in the least amount of time. I am passionate about helping you through the process and that means answering my phone, returning phone calls, and spending the time needed for a successful transaction. Call me today. 352-422-5297
