By Mike Bodeen · 12 December 2016
November Sales Report
Market Still Looking Good!
We trust your Thanksgiving holidays were rich in family, friends, fun, food, and football, – in that order. Ours was, with Cardinal football being the only exception.
There’s no real surprise in November’s sales numbers. In a few words, the market remains quite healthy. We did see a spike in mortgage rates following the election, but more accurately because of a stronger economy. We’re not anticipating significant market gyrations because of the rate rise, but it’s something we’ll be watching. Major rate increases can bring a pause to some buyers who may hope that rates fall back. I’m not sure that’s where the smart money is right now, however. If lenders continue to slowly improve availability of loans, modest increases in interest rates should not disrupt the market. However the possibility of a sudden, unexpected and large rise in mortgage rates could take the wind out of certain buyers’ sails.
There are still a few of us around who recall meteoric mortgage rate rises of the late 70’s and early 80’s. Does anyone remember October of 1981 when the 30 year fixed rate mortgage in the U.S. hit 18.45%? So, looking at 4%+ rates right now remains bargain basement pricing.
November’s Numbers:
Active Listings: 20,928 versus 21,493 last year – down 2.6% – and down 0.5% from 21,028 last month
Pending Listings: 5,782 versus 6,147 last year – down 5.9% – and down 4.4% from 6,050 last month
Under Contract Listings: 9,368 versus 9,552 last year – down 1.9% – and down 5.2% from 9,884 last month
Monthly Sales: 6,910 versus 5,273 last year – up 16.0% – but down 2.7% from 7,100 last month
Monthly Average Sales Price per Sq. Ft.: $144.48 versus $135.49 last year – up 6.6% – and down 0.2% from $144.74 last month
Monthly Median Sales Price: $225,000 versus $210,000 last year – up 7.1% – but down 1.7% from $229,000 last month
Just as for October, the sales count for November was very impressive – a 16%% gain over last year. There remains no doubt that demand is stronger now than it was a year ago. Listings are down slightly from this time last year while homes under contract are near last year’s levels. The median price from one year ago was good news for homeowners as home prices rose 7.1%.
Overall the market is looking healthy with no significant signs of dysfunction. We wish all of you a wonderful Christmas and holiday season!