Although home sales have significantly recovered since the shakiness of the market a few years ago, recent statistics reinforce that home sales remain mostly on an upward swing. Last month, home sales jumped by just over four percent, representing the highest monthly sales pace since February 2007. These numbers suggest that although the economy continues to have its up and downs due to factors like soft global demand, housing continues to go strong.
Home sales rose throughout the country, but inventory has dwindled. There is now a 4.8 month supply of homes for sale based on current sales trends, which is less than the 5.1 month supply when compared to August. A reduced inventory may not be an important factor at the moment, but it could pose a problem around spring 2016 for example as inventory becomes tighter.
In some more positive news, median home prices also dropped to an average of $221,900. That’s still an increase of just over six percent when compared to the median home prices of 2015.
All of this news comes on the heels of Tuesday’s positive housing news regarding housing starts showing a boost in demand for rental apartments. Overall, the rise in home sales displays a increase of 8.8 percent from last year. The sales pace is slightly higher than what economists had initially predicted.