How does the October Market Report Affect You?
Today I want to cover the state of the monthly market and how we compare to last year. First, October home sales are up 12% compared to 2012 and up 11% for all of 2013 versus last year’s home sales. Looking at these incredible numbers, 69% of those sales were existing single family homes which is up 5% from October 2012. New construction amounted for 29% of sales, which is down from 33% in October 2012 leaving condo sales accounting for 2%.
When we reviewed the supply of homes on the market for you and your friends to purchase, the number of available homes has increased by 117 units over last year’s numbers, which totals 3,076 total units. This was led by an increase in new homes inventory of just over 10%. The inventory-to-sales ratio in October was 6 ½ months of housing supply and 3.8 months in new construction, which is down 7% from last year. The market equilibrium is considered to be 7-8 months during October. The October median sales price was $164,000, decreasing 6% from last year and down 8% from last month. Historical data shows that the median sales price for October is typically down from September by about 1%. However, these are subject to season buying patterns.
The wild card for the market this year is how the market responds to sequestration and Government Shutdown. The Mortgage Bankers Association forecasts increases in the purchase market based on their expectations for ongoing improvements in the economic and job markets. They project economic growth 2.4% in 2014 and 2.7% in 2015 supported by the increase in consumer spending. Our expectation is that economy will grow faster in the second half 0f 2014 as some of the government debates on budgets become resolved.
Thanks and have a great day!