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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.

August 2018 - Market Activity

by The Worrell Group

August 2018

Rising home prices, higher interest rates and increased building material costs have pressured housing affordability to a ten-year low, according to the National Association of Home Builders. Keen market observers have been watching this situation take shape for quite some time. Nationally, median household income has risen 2.6% in the last 12 months, while home prices are up 6.0%. That kind of gap will eventually create fewer sales due to affordability concerns, which is happening in several markets, especially in the middle to high-middle price ranges. 

 
Closed Sales were up 8.0 percent to 3,802. 
 
Pending Sales increased 19.0 percent to 3,731, and Inventory shrank 18.0 percent to 8,059. 
 
Median Sales Price was up 9.0 percent to $179,000. Percent of Original List Price Received increased 0.3 percent to 96.2%. Absorption Rate was down 18.8 percent to 2.6. 
 
While some are starting to look for recessionary signs like fewer sales, dropping prices and even foreclosures, others are taking a more cautious and research-based approached to their predictions. The fact remains that the trends do not yet support a dramatic shift away from what has been experienced over the last several years. Housing starts are performing admirably if not excitingly, prices are still inching upward, supply remains low and consumers are optimistic. The U.S. economy is under scrutiny but certainly not deteriorating.

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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