June Housing Report

    As was widely expected, the Federal Reserve did not change the target range for the federal funds rate – currently set at 2.25 to 2.5 percent – during their June meeting. Although the economy is still performing well due to factors such as low unemployment and solid retail sales, uncertainty remains regarding trade tensions, slowed manufacturing and meek business investments.
    New listings decreased 9.7 percent for residential homes and 2.6 percent for townhouse/condo homes. Pending sales increased 1.6 percent for residential homes but decreased 17.1 percent for townhouse/condo homes. Inventory decreased 21.3 percent for residential homes and 10.4 percent for townhouse/condo homes.
    Median sales price increased 11.7 percent to $236,750 for residential homes and 0.6 percent to $166,000 for townhouse/condo homes. The average days on market increased 39.3 percent for residential homes and 5.6 percent for townhouse/condo homes. Months supply of inventory decreased 22.9 percent for residential homes and 5.7 percent for townhouse/condo homes.
    In terms of relative balance between buyer and seller interests, residential real estate markets across the country are performing well within an economic expansion that will become the longest in U.S. history in July. However, there are signs of a slowing economy. The Federal Reserve considers 2.0 percent a healthy inflation rate, but the U.S. is expected to remain below that this year. The Fed has received pressure from the White House to cut rates in order to spur further economic activity, and the possibility of a rate reduction in 2019 is definitely in play following a string of increases over the last several years.

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