At 10am this morning, the National Association of Realtors announced the state of the real estate market as of June. The existing home sales were down 5.4% to the seasonally adjusted annual rate of 4.37 million, with the supply at 6.4 months. This is fantastic news for sellers and Chief Economist for NAR explained the scenario further stating,“Despite the frictions related to obtaining mortgages, buyer interest remains solid. But inventory continues to shrink and that is limiting buying opportunities. This, in turn, is pushing up home prices in many markets. The price improvements also results from fewer distressed homes in the sales mix.”
There is a dichotomy at play in these numbers, since buyers are in an excellent position to purchase properties, with mortgage rates at the record low of 3.68% for 30 year fixed mortgages, and many tax incentives for first time home buyers, however the supply of homes is limited. NAR President, Moe Veissi, described the buyer traffic in this statement , “Buyer traffic has virtually doubled from last fall, while seller traffic has risen only modestly. The very favorable market conditions are helping to unleash pent-up demand, which is why housing supplies have tightened and are supporting growth in home prices.” Across the South, and most especially in Miami Beach we are seeing a tightening in the supply of homes and condominiums. Existing condominium sales are down 7.8% with the median price up 6.9% from last year and in the south, existing home sales declined 4.4% with the median home price up 6.6% from last year. This is an optimum time to sell. If you are looking to sell your home, contact us directly.
