August 2016 Market Update
The market is doing well for the first six months of the year. Total home sales are up 5% compared to the fist half of 2015. Median existing home sales are also up 5%, setting a new record. The spring quarter has been the best its ever been in a decade. Robust appreciation has restored home equity for many homeowners encouraging them to consider selling and buying again.
There are more people purchasing homes than there are sellers. The supply of homes are down 5% from last year. According to various polls taken by Morning Consult Survey, Gallup Poll and Bankrate, people believe that real estate is the best investment across the board whether it be homeownership or other real estate.
Houses are on the market for less than 90 days for most of the country. New York homes are on the market on average anywhere from 31-40 days. Existing home sales are slightly better month to month compared to last year as well as total home sales. Seller traffic is extraordinarily strong in the southern US.
Mortgage rates are doing extremely well right now but they are not guaranteed to stay this low for much longer. The estimates are in from the top companies Freddie Mac, MBR, Fannie May and NAR.
The HomeBuyer Pulse is a demographic of responders who are not currently homeowners but are considering purchasing a home in the next 5 years. People are qualified for different types of help and financing it has now become the real estate agent's job to educate people on the fact that they can afford to buy a home despite a somewhat low credit score or a less than 20% down payment on a home.
Overall we can see that the market is extremely strong right now and is continuing to get stronger month after month. These are not signs of a housing bubble thats forming, because mortgages are still hard to acquire and rising prices are fair in accordance with the very limited supply that we see across the country.