Do headlines like “Real Estate is on Fire!” give you pause, or excitement? Last time we saw headlines like that it was, oh, 2004-2006…. Existing home sales in March rose at the highest pace in more than a decade, according to a report for the National Association of Realtors (NAR).
New home sales in March beat everyone’s expectations, up 5.8% over February and 15.6% over March of 2016. To date, new homes are selling at annualized rate of 621,000.
New home prices are also way up. In March, the average price was $315,100, substantially higher than $296,200 posted in February.
Not likely running up to a “2008” type housing crisis. Inventory is very low and the buying environment is strong. Decent jobs and low interest rates fuel strong home sales. But income is not keeping up with home prices, and inventory is becoming a problem. A shift will be upon us. But maybe financial deregulation will arrive in time to loosen underwriting guidelines enough to keep people buying; whether they can afford it or not.
For more information contact Geneva Financial Office at 805-354-0334