Tight Inventory and Other Signs Point to Another Great Year in Local Real Estate in Southern California
January normally brings out rejuvenated buyers with an unbridled enthusiasm heading into the new year. 2017 is no different. Sales totals, as was the case in past years, is seen to start out slow – especially in the first 3 months of the year. This is mostly due to lack of inventory concerns. Continued declines in the number of homes on the market may sideline buyers who cannot compete for homes listed at higher price points with a low number of days on the market, especially if mortgage rates continue to increase. By all indications, it will be another great year in local real estate for buyers and sellers ready to make a move.
New President Reverses Ruling on FHA Loan PMI
Within the first hour in office, the new president rolled back the .25% point rate cut on mortgage insurance premiums for loans backed by the FDA (Federal Housing Administration). This set the stage for what looks to be a very interesting presidential term for real estate policy and legislation. FHA loans tend to be a favorable option for those with limited financial resources. On a brighter note, wages are on the uptick for many Americans, while unemployment rates have remained stable and relatively unchanged for several months. The system is ripe for more home purchasing if there are more homes available to sell.
New Listings for January Start the Year Lower
New Listings were down in our area – approximately 4.3% for Condos-Townhomes and just over 6% for Single Family homes.
Pending Sales Deplete Inventory Heading into 2017
Pending Sales decreased just a hair over 40% for Single Family homes and just below 45% for Townhouse-Condo properties.
The Median Sales Price was up 5.0% to $625,000 for Single Family homes and 4.5% to $395,000 for Townhouse-Condo properties. Months Supply of Inventory decreased 7.7% for Single Family units and 4.8% for Townhouse-Condo units.
Dave Harbison has been a Real Estate Practitioner in Long Beach and surrounding communities for over 11 years. He regularly contributes to blogs, news outlets and other media, providing insight to home owners, buyers and sellers in the Long Beach, Seal Beach, Lakewood, Sunset Beach, Huntington Beach, Newport, Cypress and Cerritos. Dave Harbison Long Beach REALTOR®Main Street Realtors (562)618-9770 email@example.comDRE:#01475840 — Long Beach Realtor® / Real Estate Agent Long Beach Homes for Sale, Condos and Investment Properties