Can you guess what it is? Here’s a hint…it’s an adjective describing Superman? If you haven’t guessed it yet, then continue reading for the answer…
2017 was the strongest existing home sale year in more than a decade! It was the best year since 2006. In fact, it was so strong while a 3.6 percent decrease in sales occurred during December 2017, it was still 1.1% higher than 2016. What was the driving factor for sales?
“It’s the economy”
As the famous political campaign strategist, James Carville once said during a campaign. A healthy economy drove the demand for home purchases. All housing types rose an average of 5.8%. Total housing inventory nationwide for sale was 1.48m homes. National Association Realtors (NAR) chief economist Lawrence Yun stated a healthy economy, and exceptional job growth contributed to buyer demand in 2017 and expects this to continue thru 2018. Keller Williams chief economist Ruben Gonzalez also expressed the same sentiment as Yun regarding 2018. “The current strength of the employment situation and consistent economic growth leads us to believe the fundamentals driving demand for homes in 2018 will remain strong.”
With all this good news, you’re probably wondering, “What’s the bad news?” There isn’t any bad news, except a concern about increasing home prices and limited inventory will keep home sales from achieving its highest potential. In the end, 2018 will be shaping up to be ANOTHER strong year for buying and selling real estate, regardless of inventory concerns.
Other positive data points were existing condominiums and co-op sales were 1.75% points higher than 2016. Nationwide the median existing condo price in December was $236.5K, which is up 6.4% points from 2016. The average median price for an existing home was $367.4K, which is up 7.3% from December 2016. Here is additional information from NAR:
What It Means
What does all this nationwide information mean? The overall real estate market is strong. Very strong, even here in Santa Clarita Valley. Now is the time for buyers and sellers to take advantage of this hot🔥, and strong market. You also want to take advantage of the low-interest rates available. So if you’re interested in taking advantage of this strong real estate market, please contact me with any questions you have on how to buy or sell your home!
P.S. If you guessed the word was ‘strong’ you’re correct!😊