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February 2018 - Market Activity

by The Worrell Group

February 2018 

The three most prominent national market trends for residential real estate are the ongoing lack of abundant inventory, the steadily upward movement of home prices and year-over-year declines in home sales. Sales declines are a natural result of there being fewer homes for sale, but higher prices often indicate higher demand leading to competitive bidding. Markets are poised for increased supply, so there is hope that more sellers will take advantage of what appears to be a ready and willing buyer base. 
Closed Sales were up 8.2 percent in February compared to February 2017. Pending Sales decreased 1.2 percent to 2,519, and Inventory shrank 19.4 percent to 6,845. 
Median Sales Price was up 10.2 percent to $167,500. Average Sales Price rose 4.7 percent in February. Absorption Rat e was down 24.1 percent to 2.2. 
In February, prevailing mortgage rates continued to rise. This has a notable impact on housing affordability and can leave consumers choosing between higher payments or lower-priced homes. According to the Mortgage Bankers Association, the average rate for 30-year fixed-rate mortgages with a 20 percent down payment that qualify for backing by Fannie Ma e and Freddie Mac rose to its highest level since January 2014. A 4.5 or 4.6 percent rate might not seem high to those with extensive real estate experience, but it i s newly high for many potential first-time home buyers. Upward rat e pressure is likely to continue as long as the economy fares well.

January 2018 - Market Activity

by The Worrell Group

January 2018

Last year, U.S. consumers seemed to be operating with a renewed but cautious optimism. The stock market was strong, wages were edging upwards and home buying activity was extremely competitive. Not much has changed in 2018 in terms of those measures, yet there is a sort of seasoned prudence mixed into the high emotions that go with a major expense like a home purchase. We are now several years deep into a period of rising prices and low inventory. Those in the market to buy a home have caught on. As sellers attempt to take advantage of rising prices, expect buyers to be more selective.

Closed Sales were up 5.3 percent in January compared to January 2017. Pending Sales increased 3.1 percent to 2,216, and Inventory shrank 18.4 percent to 7,070.

Median Sales Price was up 10.0 percent to $158,000. Average Sales Price rose 5.6 percent in January. Absorption Rate was down 20.7 percent to 2.3.

Whatever external forces are placed upon residential real estate markets across the country – whether they are related t o tax legislation, mortgage rates, employment situation changes, new family formations, the availability of new construction and the like – the appetite for home buying remains strong enough to drive prices upward in virtually all markets across the country. New sales are not necessarily following that trend, but monthly increases are expected until at least late summer.

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The Randy Worrell Team
RE/MAX Legends Group
5645 Castle Creek Pkwy N
Indianapolis IN 46250
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