As anticipated at the outset of the year, demand has remained high through the first three quarters of 2016, propping up sales and prices despite heavy reductions in inventory and months of supply across the country. With rental prices and employment opportunities in a consistent climb, year-over-year increases in home buying are probable for the rest of the year but not guaranteed.
New Listings were down 22.1 percent for Single-Family homes and 14.9 percent for Townhouse-Condo properties. Pending Sales increased 20.1 percent for Single-Family homes but remained flat for Townhouse-Condo properties.
The Median Sales Price was up 6.3 percent to $260,000 for Single-Family homes but decreased 2.0 percent to $232,800 for Townhouse-Condo properties. Months Supply of Inventory decreased 32.0 percent for Single- Family units and 20.4 percent for Townhouse-Condo units.
In general, today’s demand is driven by three factors: Millennials are reaching prime home-buying age, growing families are looking for larger homes and empty nesters are downsizing. However, intriguingly low interest rates often prompt refinancing instead of listing, contributing to lower inventory. Recent studies have also shown that short-term rentals are keeping a collection of homes off the market.