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Summer is here and the market is hot! In fact, my predictions from last month seem to be gaining popularity with many other experts in the real estate field. I told you that we’re in a five-year pivot and on track to grow market sales strongly over the next five years, and it looks like that’s what’s happening.
If you look at pending home sales from January of 2016 to April, you can see that pending sales are dramatically increasing month to month. In fact, the April numbers far surpass the March numbers! There is tremendous demand for homes out there right now, and that demand will lead us to a phenomenal year (and a phenomenal 2017)!
I am not the only one who thinks that. Lawrence Yun, the chief economist at the National Association of Realtors, says, “In spite of deficient supply levels, stock market volatility and the paltry economic growth seen so far this year, the housing market did show resilience and had its best first quarter of existing sales since 2007.”
That’s right - this year we had the best first quarter in a decade! Freddie Mac agreed, stating that “Home sales typically rise in the spring and summer months, and we anticipate an acceleration in home sales that would surpass 2007 by late summer.”
For racing fans out there, we had a Triple Crown of April home sale reports - existing home sales, new home sales, and pending home sales were all very positive. Again, the fact that home sales have increased so much simply indicates how strong demand is in our market.
That said, there are some naysayers worried about home prices. The home price expectation survey asked a panel of 100 economists, real estate experts, and investment strategists to identify the primary driver of real estate home values in the United States right now. Of those, 50% pointed to low inventory while 20% thought low mortgage interest rates are driving the market. In other words, 70% of experts say the market is dictating home prices. It all boils down to supply and demand.
We’re eventually going to get enough supply to match the demand. In fact, we’re already starting to see that in our local market. Sellers that have been waiting for the market to settle are anxious to finally make their move. That is why I’m so sure that we will see a skyrocket in the number of home sales but not in home prices.
If you have any questions, please give me a call or send me an email. If you are thinking about selling your home, check out www.homesharkseminar.com. Our next seminar will be in October. I look forward to speaking with you!