Is the Current Pace of Home Sales Maintainable?

By
Real Estate Agent with RE/MAX Crossroads in Cuyahoga Falls and Stow, Ohio

current pace

here are some experts questioning whether the current pace of residential home sales is maintainable. Are too many people buying homes like in 2004-2006? Are we headed for another housing crisis? Actually, if we look closely at the numbers, we can see that we are looking at a very healthy real estate market.

Why the concern?

Some are looking at the last four years of home sales and comparing them to the three years just prior to the housing bubble. Looking at the graph below, we can understand that thinking.

existing

However, if we go further back in history, we can see the real picture. After taking out the “boom & bust” years, the pace of sales is growing at quite a natural pace.

 

and

And new home sales are way below historic numbers. Dave Liniger, Re/Max CEO explains:

“We expect a seasonal uptick in sales this time of year and March certainly met and somewhat exceeded that expectation. We don’t anticipate the tightening inventory to ease up in most markets until new home construction can catch up to its pre-recession pace. Until then, sellers will enjoy a fast-paced market and buyers will need to work with their agents to get in the right home.”

Bottom Line

The current pace of residential home sales definitely seems maintainable.

Posted by

 

Tony Morganti, CRS, ABR

330-352-9513

Comments (2)

William Feela
WHISPERING PINES REALTY - North Branch, MN
Realtor, Whispering Pines Realty 651-674-5999 No.

The current rate of solds will catch up sooner or later, the real question is wil the values hold?

May 02, 2017 03:20 AM
Tony Morganti
RE/MAX Crossroads in Cuyahoga Falls and Stow, Ohio - Cuyahoga Falls, OH
CRS, ABR, SRES - Cuyahoga Falls, Stow

William Feela - I agree with you and the answer is 'only time will tell.'

May 02, 2017 04:17 AM