Residential Market Insights: October 2016

Lennar model home backyard

HOME SALES

The National Association of REALTORS® reported home sales at a seasonally adjusted annual rate of 5.33 million homes during the month of August. This was a decrease of 0.9 percent from July, and an increase of 0.8 percent from August of last year.

HOME PRICE

The median home price decreased to $240,200 in August, which was down 1.3 percent from July and up 5.1 percent from August of last year. The median home price has increased by nearly $11,700 in the past year alone.

INVENTORY – MONTH’S SUPPLY

There was a 4.6-month supply of housing inventory in August, which was a 2.1 percent decrease from July. The total number of homes for sale decreased by 9.8 percent compared to August of last year.  It is still a seller’s market.

Months of supply is the measure of how many months it would take for the current inventory of homes on the market to sell, given the current pace of home sales. Months of supply is a good indicator of whether a particular real estate market is favoring buyers or sellers. Typically, a market that favors sellers has less than 6 months of supply, while more than 6 months of supply indicates an excess of homes for sale that favors buyers.

The current market for mortgage rates is as follows:

Mortgage Type Interest Rate
30-Year Fixed 3.48%
15-Year Fixed 2.76%
5/1-year ARM 2.80%
Historical average 8.90%

 

Thinking of buying or selling real estate?

KW1784102f20KW_thumb.jpgYou should consider using a realtor.  If you are interested in buying real estate (new home, existing home, or commercial property), please contact me (Alan Lane with Keller Williams Realty at 2119 W Brandon Blvd, Brandon, Florida  33511).  As a life long resident of Central Florida, I can help you find the right property for you whether it is in Lakeland or as far south as Sarasota.  The Keller Williams offices of  ”Suburban Tampa” include the offices in Brandon, Plant City, Fishhawk Ranch, and our newest office in Valrico.  My email address is alanlane66@gmail.com, or call me at 813.205.9280.  If you are just starting your search, you can search the MLS for real estate opportunities on my website at this link.

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