Redfin – the real estate brokerage says that in comparison to a year ago, the price of homes the U.S. saw strong growth – showing 7.6 percent, in October. In the market that Redfin serves, $288,000 was the median sale price.
In the last four months, there has been a year-on-year decline in home sale and prices have essentially been unchanged from the October price of last year.
“The last time we saw a substantial increase in the number of homes for sale, Donald Trump was a candidate in a Republican field of 11.”
“Despite strong buyer demand, sales are sputtering due to low inventory,” said Redfin chief economist Nela Richardson. “The last time we saw a substantial increase in the number of homes for sale, Donald Trump was a candidate in a Republican field of 11.”
Noting the largest year-over-year decrease in inventory since 2013 nationally, there was a drop of 12.2 percent in the number of homes for sale. In October, 3.1 months supply period for homes. It is therefore indicated that sellers have the upper hand in the market due to the less than six months of supply. Since January of 2012, more than 6 months of supply have not been seen in any month.
The West Coast markets are the ones where one can particularly see the issue of low-inventory. Heh sharpest price rise due to the sharpest drop in inventory was seen in the San Jose metro area. Prices rose by 19.2 percent as the number of homes had halved in October this year compared to the same month a year ago.
Yea- on-year increase in inventory was reported in just eight of the 74 metros that are tracked by Redfin.
Compared to last October, 44 days was the typical wait time in the market for buyers.
“The House of Representatives and Senate are debating tax reform proposals that could have a significant impact on homeowners, particularly in states with expensive homes and high property taxes like California, New York and New Jersey,” said Richardson.
While awaiting to see the outcome of the tax bill and the manner in which it would impact the budgets, a section of prospective customers is stepping away from the market for the time being, reported Nick Boniakowski, Redfin market manager in Northern New Jersey. But due to the perception that the time as well as the likelihood of passage of the bill is unclear and because they believe that there would be changes made in the bill, many buyers are going ahead with plans for home purchases.
“If either of the current bills were to pass, it’s likely that buyer demand would weaken in expensive, high-tax states, especially for homes at higher price points, though any market shifts will be gradual,” said Richardson.
(Adapted from Businesswire.com)