According to the National Association of Realtors, inventory is on the decline but the nationally the median existing-home price is on the rise, making this the 17th consecutive month of year-over-year price increases.
And once properties are being brought to market, compared to this time last year, they are moving, with the median time on market for all homes at the 42 day mark in July. While that's up from 37 days in June, it is still 39 percent faster than the 69 days on market in July 2012.
Regionally, existing-home sales in the West rose 6.6 percent to a pace of 1.29 million in July and are 13.2 percent higher than a year ago. The median price in the West, driven the most by a supply imbalance, was $287,500, which is 19.2 percent above July 2012.
The National Association of Realtors®. Lawrence Yun, NAR chief economist, said changes in affordability are impacting the market. “Mortgage interest rates are at the highest level in two years, pushing some buyers off the sidelines,” he said. “The initial rise in interest rates provided strong incentive for closing deals. However, further rate increases will diminish the pool of eligible buyers.”
Despite higher mortgage interest rates, Yun identified compensating factors that can sustain a continued recovery. “Although housing affordability conditions will become less attractive, jobs are being added to the economy, and mortgage underwriting standards should normalize over time from current stringent conditions as default rates fall.”
(Source:National Association of Realtors and RISMedia.)
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