Our housing market has shown even more signs of strength and reports indicate this trend is likely to continue. Home prices are on the rise, mortgage rates are increasing, new construction and new home sales are up and inventory levels are the lowest they have been in 7 years. This is certainly refreshing to hear since historically the housing market is one of the best leading indicators for our economy.
Home prices continue to rise and have shown a gain of 12% over the past year according to Scott Grannis, former Chief Economist for Western Asset Management Company. The higher mortgage rates we have been witnessing lately are a positive sign that the housing market is rebounding.
The spike in new construction and new home sales are again another step in the right direction. New home sales in May exceeded expectations (476K vs. 460K) and are up 75% from their lows, states Scott Grannis.
The diminishing level of inventory is causing a strong demand in our housing market. For the past 7 years, inventory levels have been at their highest and now we are faced with a relatively shortage of homes for sale. This is an encouraging sign that our housing market is improving.
We’ve been in an ongoing recovery period for quite some time, but the future of our housing market looks bright. Right now sales are increasing and we anticipate that to continue. If you’d like to search the available inventory in our market, please click HERE or feel free to contact us at 239-963-4811 with any questions.