Please wait as we prepare your PDF file ....

Mission Chronicle Blog

Search Blog

our goal is to help you stay informed by providing timely and interesting articles.

A month in review: The May housing market


Download PDF

Every month, economists release a number of indices, reports and analyses of the housing market, and it can be difficult to keep up with them all.

Thankfully, the National Association of Realtors recapped the month in its new Housing Minute monthly video series.

Seventy-one percent of homeowners believe now is a good time to sell.

The National Association of Realtors released its Q2 Homeownership Opportunities and Market Experience (HOME) Survey, where 71 percent of homeowners said it they felt it was a “good time” to sell — the only caveat is that those sellers aren’t actually selling their homes. Furthermore, the renters who would be buying those new listings aren’t feeling too confident about their ability to buy. Again, the only solution to help sellers sell and buyers buy is more for-sale inventory. “I believe there is one answer to both of your questions: more inventory,” said NAR Chief Economist Lawrence Yun in an emailed statement. “More new homes for sale would increase the pool of listings homeowners would have to choose from if they decided to sell their home. Many right now are staying put because they will likely sell their home a lot quicker than it will take to find another home to buy because of tight supply.”

May sales are up 1.1 percent month-over-month and 2.7 percent year-over-year, and May sales prices rose 5.8 percent year-over-year to a new peak median of $252,800.

May existing home sales rose after a “notable decline” in April. Yun noted the rise was due to consumer resilience in the face of hostile housing market conditions. The 5.8 percent year-over-year increase in home prices is part of a 63-month trend of rising home prices. S&P/Case-Schiller released its April numbers with a fifth consecutive all time high in home prices. In the report, S&P Dow Jones Indices managing director and chairman of the index committee David M. Blitzer said “there’s nothing right now to keep prices from going up,” but warned a slow down will eventually come. “The question is not if home prices can climb without any limit; they can’t,” Blitzer said. “Rather, will home price gains gently slow or will they crash and take the economy down with them? For the moment, conditions appear favorable for avoiding a crash.”

There were 1.96 million active listings — an 8.4 percent drop from May 2016, and homes were on the market an average of 27 days. 

Secrets of high-growth real estate teams As we all know, the real estate industry is hyper-competitive. And because there are few better catalysts for innovation than competition, real estate is constantly blazing new ground. Real estate expansion teams — teams that do business in multiple markets — are one of the industry’s latest, and hottest, innovations … New supply isn’t keeping up with demand, which means when new listings hit the MLS, buyers are snapping them up ASAP. According to Trulia Chief Economist Ralph McLaughlin, this is especially impacting first-time buyers who aren’t equipped to handle the boom in home prices. First-time buyers looking for a starter home will have to spend 3.1 percent more of their income to afford a median priced $169,129 property. Zillow released a study that revealed homes are selling an average of eight days faster, and that isn’t expected to slow down any time soon. California markets are feeling the pinch the most with homes staying on the market, on average, for 20 to 25 days.

Signed contracts dipped for the third consecutive month, taking a 0.8 percent month-over-month and 1.7 percent year-over-year hit. 

May’s pending home sales were part of a three-month decline, thanks to inventory shortages. Yun says “buyer interest” is there, but there’s simply not enough supply to meet the demand. The West Coast was hit hardest with a 4.5 percent year-over-year decline in contract signings.

Email Marian McPherson.

Source: click here

Read More



  • Navigating the long-term decentralizing of work (part 2 of 2)

    As interest in urban condos fluctuates and suburban mansions see multiple offers, the shift to decen...

  • Growth-oriented Keap hits most of the CRM high notes

    Have suggestions for products that you’d like to see reviewed by our real estate technology ex...

  • What the decentralizing of work means for your market (part 1 of 2)

    Successful professionals in business and finance are some of the leading buyers and sellers of luxur...

  • Part Instagram, part Pinterest, property search gets social with Rila

    Have suggestions for products that you’d like to see reviewed by our real estate technology ex...

  • Where do buyers want to retreat to this year?

    For luxury real estate buyers, the search has begun for homes where the nearest neighbors are large ...

  • Manage leads, listings and loans with Townify

    Have suggestions for products that you’d like to see reviewed by our real estate technology ex...

  • 3 trending outdoor amenities buyers are looking for

    Easy access to the conveniences consumers once enjoyed outside their homes — from spas to gyms to ...

  • OpenFrame brings new twists to its virtual home tour app

    Have suggestions for products that you’d like to see reviewed by our real estate technology ex...

  • When a second home becomes a first home: helping buyers make the switch

    For many luxury buyers, a dream home is within reach — in fact, they might already own one. As hom...

  • Switcher Studio brings easy, broadcast-level video production to the iPhone

    September is Marketing and Branding Month at Inman. That means we’re talking to the chief marketin...

October 2020
Mon Tue Wed Thu Fri Sat Sun

  • Polls

    What information you are looking for?

    View Results

    Loading ... Loading ...
  • Last month Results

    How Is My Site?

    • Good (100%, 3 Votes)
    • Excellent (0%, 0 Votes)
    • Bad (0%, 0 Votes)
    • Can Be Improved (0%, 0 Votes)
    • No Comments (0%, 0 Votes)

    Total Voters: 3


    Loading ... Loading ...