Interest rates and new construction activity have been in the spotlight lately, fueled by concerns over tapering Federal Reserve activity and ongoing inventory constraints. Watch for indications that more homes are selling in less time and at higher price points. Also watch for sellers returning to an inviting marketplace, which will help replenish neighborhoods with new listings.
New Listings were down 0.4 percent to 1,695. Pending Sales increased 5.5 percent to 1,040. Inventory shrank 15.8 percent to 5,153 units. Prices were stable as the Median Sales Price remained flat at $130,000. Days on Market decreased 5.9 percent to 64 days. Months Supply of Inventory was down 22.1 percent to 6.0 months, indicating that demand increased relative to supply.
The economy – which generates the jobs that fuel housing demand – continued to improve at a moderate pace during the second quarter of 2013. Budget sequesters and sluggish export growth have taken a back seat to housing recovery and stronger consumer spending. Interest rates could flirt with 4.0 or 4.25 percent again but the days of 3.3 percent interest are likely behind us.
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