In the first half of this year, home prices rose. From January to June, the average sales price of a single family home went up by 1.8%. The average sales price of a condo or townhome went up by 2.8%. First quarter (Jan-Mar) single family home sales started out slow, but they made a nice recovery in the second quarter with better results (Apr-Jun). And while sales are not quite at last year’s pace yet, I believe they will be by end of the third quarter. There are still plenty of buyers buying, interest rates are still low, and summer is only half over. Historically we slowdown in late fall, so we still have much buying time left to bring those numbers up.
Interestingly, there is a lot more inventory meaning homes for sale, this year. We ended June with 4,233 single family homes for sale, a dramatic increase over last June when we saw only 3,868 single family homes for sale. I think the increase is the result of two things: (1) many sellers were waiting until the market improved to put their home up for sale, and when it finally did they all did. AND (2) new construction is booming again, causing many to move up into a newer home.
I think the biggest factor to consider here is inventory has gone way up, but sales have only gone up slightly. With more supply and less demand, prices will probably stabilize.