Housing Prices Remain Stable Despite Falloff In Sales

Home builders in the US remain pessimistic, and sales continue to slide, but there is some good news. Incentive-driven sales borrowed heavily from future activity, delaying recovery, yet …

Home builders in the US remain pessimistic, and sales continue to slide, but there is some good news. Incentive-driven sales borrowed heavily from future activity, delaying recovery, yet prices are stronger than a year ago and could climb if supply stays in check. See the following article from HousingWire to learn more.

August home sales dropped 0.5% after plummeting in July, according to real estate franchise RE/MAX.

Home sales are still down 17.9% from August of last year. While some real estate agents reported increased showings, few have translated into closed transactions after the expiration of the homebuyer tax credit at the end of April.

Claim up to $26,000 per W2 Employee

  • Billions of dollars in funding available
  • Funds are available to U.S. Businesses NOW
  • This is not a loan. These tax credits do not need to be repaid
The ERC Program is currently open, but has been amended in the past. We recommend you claim yours before anything changes.

“This summer’s market is still recovering from the number of buyers who bought earlier to take advantage of the Tax Credit,”   Margaret Kelly, CEO of RE/MAX, said. “It may take a couple of months to regain its footing, but we are expecting an increase in sales for September as the final deadline for the Tax Credit nears, and we’re very pleased that prices are holding steady.”

Going forward though, homebuilder pessimism in newly built single-family market remained unchanged in September from its 17-month low in August, according to the National Association of Home Builders.

The median sales price reached $205,655 in August, down 1.7% from July and 1.3% above levels last year. California cities such as San Francisco (11.8%), Los Angeles (7.6%) and San Diego (3.5%) are leading price appreciations across the country. According to RE/MAX, if inventory levels remain stable, prices should still continue upward for the next few months.

In August, it has. The inventory of homes on the market dropped 1.1% from the previous month and remains 1.4% below last year. For the 54 metropolitan statistical areas (MSAs) there is a 9.2 months worth of supply. A six-month supply is considered a healthy and balanced market.

This article has been republished from HousingWire. You can also view this article at
HousingWire, a mortgage and real estate news site.

advertisement

Does Your Small Business Qualify?

Claim Up to $26K Per Employee

Don't Wait. Program Expires Soon.

Click Here

Share This:

In this article