INVENTORY, RATES, DEMAND PUSH PRICES HIGHER
Low interest rates have triggered strong buyer demand across the country, and market activity has been pushing prices upward. Freddie Mac reported another record low for 30-year, conventional fixed-rate mortgages when the national commitment rate dropped to 3.35 percent in November. The rate was 3.99 percent at this time last year.
As inventory continues to drop, we can expect to see more pricing adjustments as buyers compete for the same homes. Time on the market has dropped to 70 days in November, and available inventory has fallen another 3.8 percent to just over 2 million existing homes for sale. At today’s sales pace, existing-home inventory will be exhausted in 4.8 months, creating the lowest housing supply since September 2005.
Regionally, existing-home sales rose 7.9 percent in the South, 7.2 percent in the Midwest, and 6.9 percent in the Northeast. Existing-home sales in the West were up 0.8 percent in November, representing a 4.4 percent increase over 2011 levels for the region.
The Gina Koerner Team http://www.stlouishomesbygina.com/Newsletter