How long can the residential real estate market go on like this? We are about two years into a national trend of dropping housing supply and increasing median sales prices. There are some regional variations to the story, but the shift to a predominantly seller's market is mostly complete. Multiple-offer situations over asking price are commonplace in many communities, and good homes are routinely off the market after a single day. It is evident that a favorable economy keeps hungry buyers in the chase.
Year over year new listings were down 11.9% for single family homes and 12.4% for townhouse-condo properties. Pending sales decreased 39.8% for single family homes and 42.1% for townhouse-condo properties. The median sales price was up 6.4% from this time last year to $680,000 for single family homes and 4.2% to $427,250 for townhouse-condo properties. The supply of Inventory decreased 13.9% for single family units and 11.1% for townhouse-condo units.
Although the unemployment rate remains unchanged at its favorable national 4.3% rate, wage growth has not been rising at the steady clip that would be expected in an improving economy. Sales activity manages to keep churning along despite looming shortages in new construction. Lower price ranges are starting to feel the effects of the supply and demand gap, as first-time buyers scramble to get offers in at an increasing pace.
Source: Pacific West Association of Realtors