Housing’s Hottest Markets: May 2017
Amid scarce supplies and high buyer demand, homes are selling fast across the country. Home prices are rising as well: The nationwide median home list price rose above $250,000 for the first time, realtor.com® reports. The median list price is 10 percent higher than a year ago.
According to the Manager of Economic Research at Realtor.com®, that with a record number of home buyers out there, this is officially the most competitive, fastest-moving spring housing market in decades. The median days on the market for homes on realtor.com® in May is the lowest since the end of the recession, and marks the first time that one in three homes is selling in under 30 days nationally.
The hottest markets nationwide in May continued to be centered in California, with the Bay Area seeing some of the fastest sales in the country and most viewings of listings from visitors on realtor.com®. Here is Realtor.com’s full ranking of the hottest housing markets for May 2017:
So What is Happening in Northern Colorado?
The real estate market is constantly evolving. What is true one day may not be true the next. For example, this past winter many forecasts for the spring season predicted buyers might be scared off by rising interest rates and a lack of homes for sale.
However, now that spring has arrived, mortgage rates have actually come down a bit and the housing market has been among the strongest sectors of the economy.
Despite higher rates and minimal inventory, the housing market is performing well and trends going forward indicate conditions may become even more favorable. Every potential home seller needs to be informed of these facts.
On the one hand, lower inventory and higher mortgage rates suggest that affordability conditions will make it tougher for buyers looking for a house this year. On the other, the job market, wages, and economic optimism have all been trending upward recently, which could help offset some of those challenges. Buyer demand is still strong. In fact, both pending home sales and demand for loans to buy homes have recently shown an upswing.
While home price gains are expected to continue, the size of the increases are not expected to be severe. Therefore, affordability, the first driving force of sales, will remain attractive, and this should encourage those desiring to own a home to swell the ranks of buyers ever further.
The second driver for inventory to make a strong comeback is getting the news of those higher prices out to potential home sellers. The hope is this will cause them to think in terms of “Do I want to stay in the home that I’m in, or now that I have more home equity, do I want to move to a better place perhaps where there’s better schools, closer to where I work, or better amenities?”
Greater home equity will allow many home owners the breathing room they’ve been needing in order to make that decision to move up a much easier choice.
Meanwhile in Northern Colorado, 637 homeowners who made that choice sold and closed a home on average in 69 days this April. Median sale prices are currently at $319,357, evidencing those equity increases from April 2016, when the median sale price was $305,227. Demand is being driven by first-time home buyers and for those in the market for a new home, home loan rates remain attractive despite recent market volatility.