The summer months are typically a slow time in the market but market activity has remained steady. We are likely to continue to see a slow climb in housing prices in future months due to the following conditions for July:
• Low Inventory – 4.4 months supply of inventory for Single Family Homes
• Low Inventory – 4.9 months supply of inventory for Condo/Townhomes
• Cash sales for Single Family Homes dropped slightly but is a positive increase from last year
• Cash sales for Condo/Townhomes increased slightly and is a positive increase from last year
• New Listings for Single Family Homes continues to increase slowly month over month; 24.5%
increase from the same time last year
• New Listings for Condo/Townhomes has increased each month since May of 2013 and is a
0.4% increase from this same time last year.
• Increase in traditional closed sales by 24.9% for Single Family Homes and 46.1% for
The median days on market decreased 18.5% for Single Family Homes and 10.4% for Condo/Townhomes. The absorption rate is at 36% for Single Family Homes and 25.3% for Condo/Townhomes. These numbers are reflective of a market with low inventory and an increased number of buyers. Seller confidence seems to be increasing as shown by the slow increase in new listings each month.
Recent changes to FHA requirements may bring additional buyers to the market increasing the demand for housing even further. The Chicago Tribune recently stated, “For borrowers who meet certain requirements, the FHA is trimming to one year the amount of time that homebuyers must wait after a bankruptcy, foreclosure or short sale before they may qualify for a FHA-backed mortgage. The waiting period had been two years after the completion of a bankruptcy and three years after a foreclosure or a short sale.”
The market is favorable for those ready to sell their homes and investment properties.
Contact: David B. Bennett
President & CEO