August 2019 Market Update
Overall, across the country, the pace of home sales rose sharply in July, reflecting the highest month-to-month gain in sales since August of 2018. Prices posted moderate gains in June as well, remaining on pace with the year-over-year growth seen last month and which, by itself, would keep home prices growing at a sustainable pace. The low inventory, slowed from the previous month, leading months of supply to tighten slightly due to the pickup in sales. Rates have been lowered and it is expected they will drop further still. Buyers should be looking to take advantage and Sellers should not procrastinate with this Seller's Market as it nears an end. With home prices posting slower but solid year-over-year gains, those looking to sell should also be well-positioned with recent equity gains in most markets.
Nationally, 30-year rate dropped to 3.6% from a peak of 4.94% in November, according to Freddie Mac. Further declines can be expected as the Federal Reserve tweaks the rate this month or next.
Housing Starts: In July, housing starts fell for a third straight month. Building permits surged 8.4%, the largest gain since June 2017, which gives hope. The seasonally adjusted annual pace of home sales increased by 4.9% from April to May, to 4.89 million homes nationally. This is still 5.6% below the pace at this time last year, which in combination with higher levels of inventory has helped keep prices rising at a more sustainable pace than we saw the previous year. The pickup in home sales in May is further evidence that the market is recovering after the slow first quarter of 2014.
The market hasn't benefited much from the declining mortgage rates because of land and labor shortages. These shortages are affecting builders' ability to build in the sought-after lower-priced homes.
EXISTING HOMES: Fannie Mae has lowered the existing homes forecast calling for an expected decline this year. They put the blame, squarely, on the limited inventory. This has become a persistent issue that flies in the face of a strong housing sentiment. The result will be a restriction of the potential for a sustained growth in home sales.
In Suffolk County, this past June, they posted the highest median price for pending home sales in over a decade. Nassau slipped slightly for the month but is still up over last year.
Year-over-year price gains have gained in recent months due to lower levels of inventory and a slower pace of home sales than those in the previous year.
Nationally, the number of homes available for sale decreased to a less than 5 months of supply. The months of supply decreased from the previous month, as the increase in available homes did not keep pace with the rise in the pace of home sales. In the same month of last year there were a bit more than 5 months of supply, meaning that buyers should have less available this Summer compared to the same time last year.
In Suffolk County, according to the Multiple Listing Service of Long Island, as of the end of June 2019, there was, approximately, 5.2 months supply. For the same period ending last year, June 2018, there was an estimated 5.7 months of supply. The supply of inventory has dropped by 9%. This indicates that the national trend of inventory supply holds true for Suffolk County.
In Nassau County, according to the Multiple Listing Service of Long Island, as of the end of June 2019, there was a 5.5 months supply. For the same period ending last year, June 2018, there was a 5.6 months supply. The inventory and supply has remained virtually unchanged for Nassau County. This tells us that the rate of sales is keeping pace with the rate of listings.
If you would like information concerning your home and how it related to these national and regional statistics and fact, please give a call to The McKenna Team of eXp Realty at 631-278-6987 and ask for Cyndi or email to firstname.lastname@example.org