Coming off the recession era bust, in 2012 and 2013 we had roughly a 20% combined rate of appreciation. In May I reported that although prices continued to appreciate, the rate of appreciation was slowing. I further postulated that for 2014 I anticipated an appreciation rate of 5-7%. If June is indicative of the remainder of the year, then we are at that point. Consider the following: (i) there were 5.3% less homes for sale in June than the same time last year; (ii) there were 5.8% less new listings; (iii) closed sales increased 8.4%; and (iv) pending sales, which is a barometer of sales over the next 2 months, increased 31.2%. When prices are increasing only 5%, in the face of diminishing supply, there is no reason to anticipate major price appreciation. The facts don’t support it. Rather, when coupled with competition from new homes, and a jobless recovery, it is more probable that we will see prices increase in the 5% annual range. This is the general historical rate of appreciation. Consequently, this is as likely as secure a time to buy or sell as we are apt to see over the next few years.
- Homes for Sale, Sold, Pended & New Listings: Neutral
- Homes for Sale: 572 homes; down 9.5% from last month, up 5.3% from last year.
- Homes Listed: 162 homes; down 15.2% from last month, down 5.8% from last year.
- Homes Closed: 181 homes; down 15% from last month, up 8.4% from last year.
- Homes Placed Under Contract: 206 homes; 0% from last month, up 31.2% from last year.
- Average Sold Price per Square Foot: Neutral
- Average Sold Price: $135 per square foot; up 5.6% from last month, up 4.8% from last year.
- Average Days on Market: Falling
- Days on Market: 69 days; down 8% from last month, down 8% from last year.
- Sold/List Price Ratio: Steady
- Sold/Original List Price %: 92%; down 0% from last month, down 1.1% from last year.
- Sold/Final List Price %: 95%; down 0% from last month, 0% from last year.
- Average Active List Price: $292,000; up 2.5% from last month, up 5.4% from last year Average Active List Price : Appreciating Average Sold Price: Neutral Median Sold Price: Neutral
- Average Sold Price: $218,000; up 12.4% from last month, up 4.8% from last year.
- Median Sold Price: $183,000; up 8.3% from last month, up 4.6% from last year.
- Inventory Based on Closed Sales: Seller’s Market Inventory Based on Pended Sales: Seller’s Market
- Inventory based on Closed Sales: 3.2 months; up 6.1% from last month, down 3.1% from last year.
- Inventory based on Pended Sales: 2.8 months; down 9.8% from last month, down 20.2% from last year.
