According to the National Association of Realtors, home sales have hit record highs since 2007.
Wall Street Journal reported on the news. “Sales of existing homes rose to their highest level in more than nine years and prices climbed to a new peak in May, the latest sign of rising demand amid steady job creation and low interest rates.”
The seasonally adjusted annual rate of the number of sales increased 1.8% from April to May 2016. The median sales price increased 4.7% from the year prior, up to $239,700. However, sales prices are increasing at a faster rate than wages across the U.S.
Low housing inventory continues to be an issue, becoming a barrier to entry for first and second-time home buyers. Meanwhile, housing demand continues to increase as well.
Head of U.S. macroeconomics at Oxford Economics says, “housing demand is likely to remain solid in the coming months, underpinned by gradually strengthening wage growth and low mortgage rates.”
Even though new home construction spending increased greatly over the past three years, builders haven’t been able to keep up with the high demand.
In the end, WSJ notes, “the rejuvenated housing market has provided a boost to the economy, helping offset a slowdown in business spending and a downturn in the energy sector.”
If you’re interested in Sanibel real estate, whether you’re buying, selling, or just looking, contact one of our knowledgable Sanibel realtors, search our MLS for available properties, or get in touch with our office at 239-272-2411 for general inquiries. We’re also more than happy to help you find the Sanibel realtor that’s the right fit for you.
Source: U.S. Existing-Home Sales Rise at Fastest Pace Since 2007
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This article is provided by John R Wood Properties, a full service Sanibel Island real estate agency made of people who love where they live as much as what they do. With local knowledge and decades of combined experience, our Sanibel and Captiva Island realtors are passionate and dedicated to exceeding your real estate needs.
About the author: Nina Rogers is a writer, designer, and illustrator who grew up on Sanibel Island. As a Communications Content Manager for John R Wood Properties, Nina enjoys keeping people updated with the latest in local news and Sanibel real estate.
