Home prices across the U.S. are reaching all-time highs, prompting worry over another boom-and-bust scenario like we experienced roughly ten years ago. Yet, as we glance across the state of residential real estate, what is clear compared to the last extended run of price increases is that lending standards are now much stronger than they were before. Incomes must be verified, a reasonable amount of money must be paid toward the home prior to purchase and a more stringent loan approval process is in place to prevent a repeat performance of the Great Recession.
New Listings were down 3.3 percent to 1,397. Pending Sales increased 22.3 percent to 1,035. Inventory shrank 35.3 percent to 2,752 units.
Prices moved higher as the Median Sales Price was up 3.1 percent to $128,000. Days on Market decreased 27.6 percent to 63 days. Months Supply of Inventory was down 39.3 percent to 3.7 months, indicating that demand increased relative to supply.
In addition to a stronger base upon which to conduct real estate transactions, the overall economy is in better shape than it was a decade ago. More jobs are available, unemployment is relatively low and workers have more faith in their wages and the potential for wage increases. Although we continue to battle an inventory shortage in much of the country, optimism remains high for a successful summer for buying and selling homes.