9th Island Connection
2017 HOME SALES SURGING
The best Real Estate Market News since 2006. The only issue is that the rate of income increases are lower than the annual home appreciation increases.
Many first time homebuyers will not be able to buy a home if this trend continues. The good news is that the new Tax Law may change this trend.
WASHINGTON (December 20, 2017) — Existing-home sales surged for the third straight month in November and reached their strongest pace in almost 11 years, according to the National Association of Realtors®. All major regions except for the West saw a significant hike in sales activity last month.
Lawrence Yun, NAR chief economist, says home sales in most of the country expanded at a tremendous clip in November.
“Faster economic growth in recent quarters, the booming stock market and continuous job gains are fueling substantial demand for buying a home as 2017 comes to an end,” he said.
“As evidenced by a subdued level of first-time buyers and increased share of cash buyers, move-up buyers with considerable down payments and those with cash made up a bulk of the sales activity last month.
The odds of closing on a home are much better at the upper end of the market, where inventory conditions continue to be markedly better.”
The median existing-home price for all housing types in November was $248,000, up 5.8 percent from November 2016 ($234,400). November’s price increase marks the 69th straight month of year-over-year gains.
Instant Reaction: November Housing Starts
The following is NAR Chief Economist Lawrence Yun’s reaction to this morning’s U.S. Commerce Department report on November housing starts:
“A welcoming trend is developing in the housing sector as builders are able to bring more supply to the market on a consistent basis. The latest monthly figure of near 1.3 million annualized housing starts is solid, and the growth is mostly coming both in the West and for single-family homes.
There is still more room for improvement, as the latest figure is still not yet at the long-term 50-year average of producing 1.5 million units per year. If this rising trend continues, the worst of the supply shortage could soon end, which would help slow price appreciation in 2018. That would be a huge, welcoming relief for renters seeking to become homeowners.”
The American Dream Lives On! 
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