Inventory, Sales and Interest Rates Up
Current Price Trends
May market statistics just reported by the NWMLS show that overall prices increased slightly. The median sales price index was up to $279,897 from the $278,988 one month earlier. New home prices fell in Puyallup and Spanaway as builders made considerable concessions to move their standing inventory. If this practice continues, it will send ripples through the resale market.
This index is calculated by averaging the median sales price for the last six months. This reduces the impact of seasonal effects on the overall trend.
Market Activity
Listing inventory cannot find an upward limit as the number of homes on the market reached another record. At month’s end there were 7108 homes on the market. One year ago the unsold inventory was 4717. On a positive note, home sales increased slightly to 1304. This shows that about one in six homes is selling. Only sellers with a serious desire to sell should enter this market.
Financial Market Trends
Interest rates took a surprising turn in May and rose to 6.375% for a 30 year fixed rate traditional mortgage, even though the Fed took no actions to raise rates. Growing concern for increase in inflationary trends drove the long-term bond markets down and sent jitters through the mortgage industry. Most mortgage bankers believe this will be a short lived trend and lower rates will return.
Data and article posted By A Generous People.
