Notes on the Real Estate Market
Finally a good year! Let’s look at some of the data:
There are some very encouraging numbers which show just how improved the real estate market is. While total home sales did decrease 1.9% from August to September, which would be typical for entering the fall season, home prices rose overall. Further, housing inventory also remains low. What does this indicate? The two factors of the improving real estate market along with less competition, are enabling sellers to price their homes higher. Of course, increasing property values are good news for both buyers and sellers. Buyers know the home they purchase today will likely continue to increase in value, and sellers are finally in a position where they feel comfortable to list their homes for sale.
The statistics continue to show that homes are selling at a much faster rate than last year. The median time on market was 50 days this September while last year it was 70 days. Even though prices are up in the South as much as13.9% compared to last September, sales are also up 9.9%. This shows that since more would be buyers are confident in the economy, they are willing to invest their money in a permanent housing instead of just continuing to rent.
A slight drop off in sales is expected in October due to the government shutdown. The government shutdown created a traffic jam for many of the necessary steps for closing on homes such as obtaining tax information. Also, higher rates for flood insurance, required in flood zones, which account for 10% of all home sales, went into effect in October 1. This may create some confusion of buyers caught off guard by the flood insurance price spike.
Keller Williams Realty Lake Norman