The housing market has 4 cycles. The top of the market, the downturn, the bottom of the market and the recovery. Everyone wants to sell at the top of the market and everyone wants to buy at the bottom of the market. It is foolish to time the market. You do not know the top of the market until we are in the downturn, likewise you do not know the bottom of the market until we are in the recovery.
The U.S. Real Estate market is driven by the following 4 categories - Home Sales, Home Price, Months Supply of Inventory and Mortgage Rates.
With 5.6 million projected home sales, 2017 is on track to surpass 2016 home sales (5.5 million total annual single family home sales). The U.S. peaked in 2005 with 6.2 million total annual single family home sales and bottomed out at 4.3 million total annual single family home sales in 2011.
The annual median home price is at an all time historical high in 2017 at $248k (up from $234k in 2016) a 6% increase. To put this into perspective, we peaked in 2006 at $222k and bottomed out in 2011 at $166k. We have been in 6 straight years of increased annual median home prices.
Nationally we are at a 4.2 month supply of inventory. 6 months of inventory is considered a balanced market, more than 6 months is a buyers market, less than 6 months is a sellers market. Low inventory levels have most likely constrained home sales, which is another sign the housing market is operating near a peak.
Mortgage Interest Rates have remained between the low 3’s and the mid 4’s since 2011. The low interest rates have allowed our housing market to recover and once again reach peak levels. Affordability remains strong, yet has generally declined as prices continue to climb.
Call Noah today for your no obligation consultation and a free home value and market analysis at (828) 393-0134. The Noah George Team at Keller Williams Realty averages a home sold every 3 days and averages 3% more for our sellers compared to the original list price than the market average.
Listen to Noah “live” on The Noah George Real Estate Show every Monday morning at 9AM on WTZQ 1600AM/95.3FM and Thursdays at 10AM on WHKP 1450AM/107.7FM to hear the most current up-to-date information about your local real estate market, tips on selling your home, and positive news.