Waterfront Real Estate Information

Waterfront Real Estate Blog

The Worrell Group

Blog

Displaying blog entries 1-10 of 141

July 2019 - Market Activity

by The Worrell Group

Market Activity 

The housing market is one of the largest and most important sectors of the U.S. economy. To understand the trends within the market one must analyze activity both month-over-month and year-over-year. In this new Market Insights Report, MIBOR REALTOR® Association (MIBOR) provides a market analysis of the 16 central Indiana counties within the MIBOR service area by creating a single, timely, reliable source of data.

To create a comprehensive view of the market, small changes have been made to the Market Insights Report that will affect the year-over-year analysis over the next 12 months. In prior reports, data for the MIBOR Broker Listing Cooperative® (BLC®) listing service was pulled on the 12th business day for the prior month's data. After analyzing data input, MIBOR has updated the data pull to happen between the 5th and 7th day of the month for the prior month, allowing market data to be published much sooner. Additionally, in the new report MIBOR has separated townhouse/condo inventory and properties for lease from the aggregated totals. Separating other segments from the report will add clarity to the data as the single family residential segment is typically the focus. Finally, in March 2019, MIBOR added historical and current data from Jackson County as we welcomed them as members of our BLC® listing service.

For the third month in a row, median sales price has hit a price record at $200,295 - a 10.1% increase from July 2018. Outside of price, all other changes are relatively small, however, after three months of decline, closed sales did increase 3.6% over last year to 3,582. This is a welcomed sign for both buyers and sellers alike.

Year over year data for July:

• Median sales price increased 10.1 percent to $200,295

• Average days on market unchanged at 36

• Current active listings decreased to 6,015

June 2019 - Market Activity

by The Worrell Group

The housing market is one of the largest and most important sectors of the U.S. economy. To understand the trends within the market one must analyze activity both month-over-month and year-over-year. In this new Market Insights Report, MIBOR REALTOR® Association (MIBOR) provides a market analysis of the 16 central Indiana counties within the MIBOR service area by creating a single, timely, reliable source of data.

Median sales prices grew more than five percent year over year and have now reached an all time high at nearly $200,000. This growth rate is opposite to what we are seeing nationally and undoubtedly being aided by the recent decline in mortgage rates. These factors, along with low inventory, make for a highly competitive market even compared to what we are seeing nationally. As our market heats up, potential buyers and sellers should look to their REALTOR® for guidance.

Year over year data for June: • Median sales price increased 5.2 percent to $199,900 • Average days on market decreased to 34 • Current active listings increase to 5,731

Market Activity - May 2019

by The Worrell Group

May 2019 

The housing market is one of the largest and most important sectors of the U.S. economy. To understand the trends within the market one must analyze activity both month-over-month and year-over-year. In this new Market Insights Report, MIBOR REALTOR® Association (MIBOR) provides a market analysis of the 16 central Indiana counties within the MIBOR service area by creating a single, timely, reliable source of data. 

To create a comprehensive view of the market, small changes have been made to the Market Insights Report that will affect the year-overyear analysis over the next 12 months. In prior reports, data for the MIBOR Broker Listing Cooperative® (BLC®) listing service was pulled on the 12th business day for the prior month's data. After analyzing data input, MIBOR has updated the data pull to happen between the 5th and 7th day of the month for the prior month, allowing market data to be published much sooner. Additionally, in the new report MIBOR has separated townhouse/condo inventory and properties for lease from the aggregated totals. Separating other segments from the report will add clarity to the data as the singe-family residential segment is typically the focus. Finally, in March 2019, MIBOR added historical and current data from Jackson County as we welcomed them as members of our BLC® listing service. 
 
Statistics show a strong indication that prices are beginning to stabilize, which is a welcomed notion for buyers. Last year at this time, median sales prices were increasing in the double digits, now growth is half to a third of that. Additionally, closed price to original listing price had been growing for over 6 years (May 2012 - October 18), but since November 2018 that has steadily declined.
 
 Year over Year data for May: 
• Median sales price increase 3.2% to $196,000
• Average days on market was unchanged at 36 
• Current active listings increase to 5,431

March 2019 - Market Activity

by The Worrell Group

March 2019

In addition to the quandary of ongoing housing price increases and affordability concerns in many U.S. markets, the first quarter of 2019 saw a fair share of adverse weather as well. Sales totals were mixed across the nation and sometimes dependent on what was a persistent wintry mix, especially in the Great Plains, Midwest and Northeast. Meanwhile, new listings and total homes for sale have been trending lower in year-over-year comparisons in many areas, and last year's marks were already quite low. 

 
Closed Sales were down 3.6 percent to 2,859. Pending Sales decreased 14.7 percent to 3,653, and Inventory grew 8.8 percent to 6,212. 
 
Median Sales Price was up 4.9 percent to $182,000. Percent of Original List Price Received decreased 0.4 percent to 95.5%. Absorption Rate was up 5.3 percent to 2.0. 
 
The Federal Reserve recently announced that no further interest rate hikes are planned for 2019. Given the fact that the federal funds rate has increased nine times over the past three years, this was welcome news for U.S. consumers, which carry an approximate average of $6,000 in revolving credit card debt per household. Fed actions also tend to affect mortgage rates, so the pause in rate hikes was also welcome news to the residential real estate industry.

February Market Update - 2019

by The Worrell Group

Market Update - 2019

It is worthwhile to mention the weather when discussing residential real estate for large portions of the U.S. for February 2019, because this month has turned in some impressively cold, rainy and snowy days that have stalled some buying and selling actions. Nevertheless, housing markets have proven to be resilient despite predictions of a tougher year for the industry. It is still too early to say how the entire year will play out, but economic fundamentals remain positive.

Closed Sales were down 2.8 percent to 2,086. Pending Sales increased 10.6 percent to 2,786, and Inventory shrank 5.8 percent to 6,447.

Median Sales Price was up 3.8 percent to $173,900. Percent of Original List Price Received decreased 0.6 percent to 94.6%. Absorption Rate was down 4.5 percent to 2.1.

The National Association of REALTORS® recently reported that national existing-home sales were down slightly during January 2019 and that pending sales were up in year over-year comparisons. It is worth noting that some softening of sales was anticipated, as was a positive sales bounce during January 2019 after a slow end to 2018. Weather related events have hampered some of the necessary machinations of making home sales during February 2019, yet buyers have shown determination toward achieving their homeownership goals.

January 2019 Market Update

by The Worrell Group

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 were down 8.3 percent to 1,744. Pending Sales increased 17.1 percent to 2,595, and Inventory shrank 5.5 percent to 6,681.

Median Sales Price was up 7.5 percent to $169,900. Percent of Original List Price Received decreased 1.0 percent to 93.8%. Absorption Rate was down 4.3 percent to 2.2.

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.

December 2018 - Market Activity

by The Worrell Group

December 2018

Home prices were consistently up again in most markets in 2018 but at reduced levels compared to recent years. High demand for few homes for sale fueled price increases, but evidence is mounting that inventory will finally improve in 2019. This may apply some downward pressure on prices for beleaguered home buyers. A fourth interest rate hike by the Federal Reserve in 2018 spooked the stock market to close out the year. The Fed has indicated that the number of rate increases in 2019 will be halved, which may be of little comfort to an already compressed consumer. 

 
Closed Sales were down 6.6 percent to 2,589. Pending Sales increased 2.3 percent to 2,059, and Inventory shrank 4.0 percent to 7,016. 
 
Median Sales Price was up 6.7 percent to $176,000. Percent of Original List Price Received decreased 0.5 percent to 94.4%. Absorption Rate was down 4.2 percent to 2.3. 
 
Unemployment rates remained remarkably low again in 2018, and wages continued to improve for many U.S. households. It is generally good for all parties involved in real estate transactions when wages grow, but the percentage of increase, on average, has not kept pace with home price increases. This created an affordability crux in the second half of 2018. Housing affordability will remain an important storyline in 2019. 

November 2018 - Market Activity

by The Worrell Group

November 2018

The booming U.S. economy continues to prop up home sales and new listings in much of the nation, although housing affordability remains a concern. Historically, housing is still relatively affordable. Although Freddie Mac recently reported that the 30-year fixed rate is at its highest average in seven years, reaching 4.94 percent, average rates were 5.97 percent ten years ago, 6.78 percent 20 years ago and 10.39 percent 30 years ago. Nevertheless, affordability concerns are causing a slowdown in home price growth in some markets, while price reductions are becoming more common.

Closed Sales were up 0.4 percent to 2,828. Pending Sales increased 4.8 percent to 2,491, and Inventory shrank 5.7 percent to 7,841.

Median Sales Price was up 8.6 percent to $179,000. Percent of Original List Price Received increased 0.1 percent to 94.9%. Absorption Rate was down 7.4 percent to 2.5.

The Bureau of Labor Statistics recently reported that the national unemployment rate was at 3.7 percent. Low unemployment has helped the housing industry during this extensive period of U.S. economic prosperity. Home buying and selling activity relies on gainful employment. It also relies on demand, and builders are showing caution by breaking ground on fewer single-family home construction projects in the face of rising mortgage rates and fewer showings.

October 2017 - Market Actvity

by The Worrell Group

OCTOBER  2018

If the last few months are an indication of the temperature of housing markets across the country, a period of relative calm can be expected during the last three months of the year. A trend of market balance is emerging as we approach the end of 2018. Prices are still rising in most areas, and the number of homes for sale is still low, but there is a general shrinking of year-over-year percentage change gaps in sales, inventory and prices. 

 
Closed Sales were up 1.7 percent to 3,198. Pending Sales increased 9.4 percent to 3,017, and Inventory shrank 8.0 percent to 8,339. 
 
Median Sales Price was up 6.4 percent to $174,500. Percent of Original List Price Received increased 0.3 percent to 95.4%. Absorption Rate was down 10.0 percent to 2.7. 
 
Stock markets experienced an October setback, but that does not necessarily translate to a decline in the real estate market. The national unemployment rate has been below 4.0 percent for three straight months and during five of the last six months. This is exceptional news for industries related to real estate. Meanwhile, homebuilder confidence remains positive, homeownership rates have increased in the key under-35 buyer group and prices, though still rising, have widely reduced the march toward record highs. 

September 2018 - Market Activity

by The Worrell Group

September 2018

Some economy observers are pointing to 2018 as the final period in a long string of sentences touting several happy years of buyer demand and sales excitement for the housing industry. Although residential real estate should continue along a mostly positive line for the rest of the year, rising prices and interest rates coupled with salary stagnation and a generational trend toward home purchase delay or even disinterest could create an environment of declining sales. 

Closed Sales were down 2.5 percent to 3,144. 
 
Pending Sales increased 8.5 percent to 3,043, and Inventory shrank 13.6 percent to 8,288. 
 
Median Sales Price was up 9.0 percent to $179,900. Percent of Original List 
Price Received increased 0.5 percent to 95.9%. Absorption Rate was down 15.6 percent to 2.7. 
 
Tracking reputable news sources for housing market predictions makes good sense, as does observing trends based on meaningful statistics. By the numbers, we continue to see pockets of unprecedented price heights combined with low days on market and an economic backdrop conducive to consistent demand. We were reminded by Hurricane Florence of how quickly a situation can change. Rather than dwelling on predictions of a somber future, it is worth the effort to manage the fundamentals that will lead to an ongoing display of healthy balance.

Displaying blog entries 1-10 of 141

Syndication

Categories

Archives

Contact Information

The Randy Worrell Team
RE/MAX Legends Group
5645 Castle Creek Pkwy N
Indianapolis IN 46250
Direct: 317-819-3330
Voicemail: 317-644-0086

Randy Worrell  -  RE/MAX Legends Group       317-819-3330  Direct       317-590-5709  Mobile