Housing markets across the nation are most assuredly active this summer, and
buyer competition is manifesting itself into several quick sales above asking price.
While the strength of the U.S. economy has helped purchase offers pile up, the Fed
recently increased the federal funds rate by 0.25 percent, marking the second rate
hike this year and seventh since late 2015. Although the 30-year mortgage rate did
not increase, buyers often react by locking in at the current rate ahead of assumed
higher rates later. When this happens, accelerated price increases are possible,
causing further strain on affordability.
New Listings were up 9.8 percent to 619. Pending Sales increased 3.8 percent to
466. Inventory shrank 4.3 percent to 2,254 units.
Prices moved higher as Median Sales Price was up 3.9 percent to $312,000. Days
on Market decreased 13.9 percent to 130 days. Months Supply of Inventory was
down 17.5 percent to 5.2 months, indicating that demand increased relative to
Inventory may be persistently lower in year-over-year comparisons, and home
prices are still more likely to rise than not, but sales and new listings may finish the
summer on the upswing. The housing supply outlook in several markets is beginning
to show an increase in new construction and a move by builders away from
overstocked rental units to new developments for sale. These are encouraging signs
in an already healthy marketplace.