Inside Lending Newsletter From Kristen Zorda, Home Price Growth Rates
QUOTE OF THE WEEK… “The unexamined life is not worth living.” –Socrates, classical Greek philosopher
INFO THAT HITS US WHERE WE LIVE… Following the Socratic teaching, let’s examine life in the housing market. A research firm serving the mortgage industry reported that national home prices are growing slowly but staying in line with inflation adjusted long-run averages. They say this shows prices have normalized and future growth rates will look like historical ones, up between 3% and 5% per year. The firm’s vp of research and analytics added, “Nationally, we don’t see evidence of a price bubble forming again. Double digit gains over the last year, while similar to rates of growth in the run-up to the bubble, are off a much lower price floor.” Good point.
Low inventory has been a challenge in some markets, so it was encouraging to see a national real estate site report inventory up in 22 of its 35 largest metros. The National Association of Realtors (NAR) put inventory up 7.6% year-over-year in January. All this is the result of higher home prices, yet more inventory should mean slower price increases. Finally, realtor.com revealed its number of for-sale listings was up 3.1% year-over-year in January. The site’s president commented, “this early rise in inventory is a welcome trend.” Basically, analysts expect less-frenzied conditions for buyers and higher sales volumes in the months ahead.
BUSINESS TIP OF THE WEEK… Know when to hire outside help so you can dedicate yourself to the tasks that have the most impact, the ones that really matter.
648 Plank Rd. Suite 203
Clifton Park NY 12065
Orson B.Klender, Associate Broker
Keller Williams Realty Saratoga Springs
38 High Rock Ave, Saratoga Springs, NY 12866
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