May 13, 2016
‘Sales Flat As Prices Rise’
By James D. York, P.A.
New stats show that Americans in the middle brackets continue to show caution in acquiring homes of their own. Even with current low mortgage rates, existing home sales are up only 5.1%, and new home sales dropped 1.5%. This can be attributed to a combination of factors including higher home prices, the possibility of interest rates going up, election year stock market worries, limited new-home construction, and flat economic growth.
Compared to a year ago, home prices rose 5.4 percent. The average mid-range home was on the market only 47 days. Buyers looking for high-end homes have more options, but first-time buyers are limited to far fewer affordable choices.
According to Svenja Gudell, Zillow’s chief economist, "Heading into spring, buyers looking for the most expensive homes will find somewhat softening prices, a larger selection of homes to choose from and more limited competition. Entry-level and mid-market buyers – typically the housing market's bread and butter – are likely to face stiff competition, rapidly rising prices and very limited inventory. The patience of many buyers will be tested in coming months."
Potential sellers may well be reluctant to list their homes when they see limited choices for buying a new one, continuing the cycle. Just give us a call with your buying or selling questions and concerns, and we’ll see what we can do.
Connect With York Real Estate Group
York Real Estate Group consists of James, Michael, and Morgan York, Florida Realtors with Downing-Frye Realty. James York is the winner of the prestigious 2014 and 2015 SWFL People’s Choice Realtor Award. The group has over 25 years combined experience and over $250 million in sales transactions. Visit The York Group online at www.naplesyorkrealestate.com for all current MLS listings of houses for sale in Naples, Marco, Bonita, and Estero. If you have other questions, the York’s invite you to email or call them at JYorkinFL@cs.com or 239-273-6727.