Wintery Mix: Median Home Sale Prices Up, Despite Inventory Issues Although Sales Decrease by 6.6%, Pending Sales up by 5.3%
Real Estate Market Commentary for January 2019:
Despite a strong U.S. economy, historically low unemployment and steady wage growth, home sales began to slow across the nation
late last year. Blame was given to a combination of high prices and a steady stream of interest rate hikes by the Federal Reserve. This
month, the Fed responded to the growing affordability conundrum. In a move described as a patient approach to further rate changes,
the Fed did not increase rates during January 2019.
Closed Sales decreased 8.2 percent for Residential homes but increased 5.2 percent for Condo homes. Pending Sales increased 5.7
percent for Residential homes and 2.4 percent for Condo homes. Inventory decreased 14.2 percent for Residential homes and
decreased slightly for Condo homes.
The Median Sales Price increased 2.1 percent to $158,000 for Residential homes and 4.6 percent to $159,900 for Condo homes. Days
on Market remained flat for Residential homes but increased 9.5 percent for Condo homes. Months Supply of Inventory decreased 13.8
percent for Residential homes but remained flat for Condo homes.
While the home affordability topic will continue to set the tone for the 2019 housing market, early signs point to an improving inventory
situation, including in several markets that are beginning to show regular year-over-year percentage increases. As motivated sellers
attempt to get a jump on annual goals, many new listings enter the market immediately after the turn of a calendar year. If home price
appreciation falls more in line with wage growth, and rates can hold firm, consumer confidence and affordability are likely to improve.
Single-Family Real Estate Quick Comparisons - January 2019:
- Across the combined categories of Residential and Condominium, Days on Market stayed the same Y-O-Y at an average of 49 days.
- January saw an average of 7 showings per listing across the entire MLS. This was up by 2 days M-O-M and down by 1 day Y-O-Y.
- 3.6% of Residential and Condo On-Market listings are flagged as “lender mediated”. These listings include foreclosures and those
marked as short sales. This percentage is down by 1.4% based on the recalculated percentage for January 2018, which was 5%. The
percentage of lender mediated listings is down by .1% M-O-M (compared to December, which was 3.5%).
January Five (5) Year All-MLS Median Sale Price Trend for Res & Condo Sales
* = Recalculated figures pulled from Realcomp’s MLS statistical database as of 2/12/2019.