According to MIBOR, the booming U.S. economy continues to prop up home sales and new listings in much of the nation, although housing affordability remains a concern. Historically, housing is still relatively affordable. Although Freddie Mac recently reported that the 30-year fixed rate is at its highest average in seven years, reaching 4.94%, average rates were 5.97% ten years ago, 6.78% 20 years ago and 10.39% 30 years ago. Nevertheless, affordability concerns are causing a slowdown in home price growth in some markets, while price reductions are becoming more common.
Closed Sales were up 0.4% to 2,828. Pending Sales increased 4.8% to 2,491, and Inventory shrank 5.7% percent to 7,841.
Median Sales Price was up 8.6% to $179,000. Percent of Original List Price increased 0.1% to 94.9%. Absorption Rate was down 7.4% to 2.5.
The Bureau of Labor Statistics recently reported that the national unemployment rate was at 3.7%. Low unemployment has helped the housing industry during this extensive period of U.S. economic prosperity. Home buying and selling activity relies on gainful employment. It also relies on demand, and builders are showing caution by breaking ground on fewer single-family home construction projects in the face of rising mortgage rates and fewer showings.
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