Inventory is continuing on a downward spiral, If the market feels a little
competitive this spring, it’s not just your imagination. “This year’s home-shopping season will be one of the most competitive ever recorded.”
Home values ascended 8 percent year-over-year in March, while the number of homes for sale ped by nearly 9 percent. The sparse inventory that is available is concentrated at the high end, pricing out many first-time buyers.
Alongside these prohibitive market metrics, rental rates across the nation are also on the rise, climbing 2.7 percent year-over-year in March. 'This year's home-shopping season is shaping up to be even crazier than last.
Housing Trends Snapshot: April 2018 Housing Minute
Nine of the 35 largest metros in the United States experienced double-digit home value growth over the past year. The markets that experienced the greatest increases in home values year-over-year in March were San Jose, where home values jumped 25 percent to a median home value of more than $1.25 million; Las Vegas, where values climbed 17 percent to $260,161; and Seattle, where values are up 15 percent to a median $492,227. These values compare to a national median home value of $213,146.
Helping drive this ascension in home values, of course, is declining inventory, which has been ongoing since early 2015. Not surprisingly, the greatest home value increases took place in the same markets where inventories experienced their steepest declines. San Jose posted a 26 percent in inventory over the year, followed closely by Las Vegas with a 23.5 percent descent in housing inventory.
These declines were outpaced only by Washington D.C., which led the nation with a 27.3 percent descent.
In all, inventory deteriorated more than 20 percent in six of the 35 largest metros. After Washington, D.C., San Jose, and Las Vegas were Indianapolis; Columbus, Ohio; and Dallas.
More than half—about 51 percent—of homes available for sale are what “high-end,” and only 22 percent are what “entry-level.” In 13 of the 35 largest metros in the United States, at least 50 percent of housing inventory is considered “high-end.”
Buyers at the low end of the market “will be competing for the few entry-level homes on the market, which are also the ones appreciating the fastest because of extremely high demand.”
We sees signs of relief down the road, “There are some signals a shift may be coming—construction activity is at its highest point in a decade—but buyers shouldn’t hold their breath.”
Home values ascended 8 percent year-over-year in March, while the number of homes for sale ped by nearly 9 percent. The sparse inventory that is available is concentrated at the high end, pricing out many first-time buyers.
Alongside these prohibitive market metrics, rental rates across the nation are also on the rise, climbing 2.7 percent year-over-year in March. 'This year's home-shopping season is shaping up to be even crazier than last.
Housing Trends Snapshot: April 2018 Housing Minute
Existing-home sales and contract signings both saw modest gains in March, even as low supply and higher mortgage rates continued to affect overall affordability.
Helping drive this ascension in home values, of course, is declining inventory, which has been ongoing since early 2015. Not surprisingly, the greatest home value increases took place in the same markets where inventories experienced their steepest declines. San Jose posted a 26 percent in inventory over the year, followed closely by Las Vegas with a 23.5 percent descent in housing inventory.
These declines were outpaced only by Washington D.C., which led the nation with a 27.3 percent descent.
In all, inventory deteriorated more than 20 percent in six of the 35 largest metros. After Washington, D.C., San Jose, and Las Vegas were Indianapolis; Columbus, Ohio; and Dallas.
More than half—about 51 percent—of homes available for sale are what “high-end,” and only 22 percent are what “entry-level.” In 13 of the 35 largest metros in the United States, at least 50 percent of housing inventory is considered “high-end.”
Buyers at the low end of the market “will be competing for the few entry-level homes on the market, which are also the ones appreciating the fastest because of extremely high demand.”
We sees signs of relief down the road, “There are some signals a shift may be coming—construction activity is at its highest point in a decade—but buyers shouldn’t hold their breath.”
Ready to Buy or Sell? We have a wealth of information to help you get started visit Precision Realty & Assoc. LLC or if you prefer a more personal touch, reach out to a us, CALL 801-809-9866 today.
#RealEstateForSale #Homeownership #UtahRealEstate #Rental
#RealEstateForSale #Homeownership #UtahRealEstate #Rental
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