As we enter the final quarter of 2016, not much has changed since the year began. Market predictions have been, in a word, predictable. A relatively comfortable pace of activity has been maintained thanks to continuing low unemployment and mortgage rates. The one basic drag on market acceleration has been inventory decline. There is little to indicate that the low inventory situation will resolve anytime soon.
New Listings decreased 1.7 percent to 12,149. Pending Sales were up 7.0 percent to 9,188. Inventory levels shrank 13.6 percent to 39,855 units.
Prices continued to gain traction. The Median Sales Price increased 7.4 percent to $186,360. Days on Market was down 19.2 percent to 59 days. Sellers were encouraged as Months Supply of Inventory was down 21.2 percent to 4.1 months.
Builder confidence is as high as it has been in more than a decade, yet the pace of economic growth has been slow enough to cause pause. A low number of first-time buyer purchases and a looming demographic shift also seem to be curbing the desire to start new single-family construction projects. As older Americans retire and downsize, single-family listings are expected to rise. The waiting is the hardest part.
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