Over a Decade, How Does the Market Fare?
While home sales this year are lower than they have been over a 10-year average, prices and inventory are both beating the average, according to National Association of REALTORS® researchers. NAR’s Economists’ Outlook blog recently took a closer look at housing market conditions based on a 10-year average outlook to gauge how far the real estate sector has really come in the housing recovery. Here’s a look at the current housing data for November compared to its 10-year November average.
The number of homes sold in the United States for November 2014 is lower than the 10-year November average, according to NAR’s analysis. “November’s low figure relative to the 10-year average may be partially due to the rush of closings in November 2009, as the first-time home buyer’s tax credit was set to expire,” NAR notes on its blog. By region, only the South posted higher average sales based on the 10-year November average, while the Northeast, Midwest, and West had current sales performing below the 10-year average.
The median home price in November is higher than the 10-year average median price. The 2014 median price of a home is about 3 percent higher nationally when compared to 2004 numbers. Regionally, only the Northeast showed a drop in home prices of 2 percent when looking at the 10-year average.
There are fewer homes for sale in the United States this November compared to the 10-year average. In 2004, the United States had the fastest pace of homes sold relative to the inventory. By 2008, the U.S. housing market saw the slowest pace, taking 11 months to sell the supply of homes on the market, NAR researchers note. The 10-year November average months supply is 7; November 2014 was at a 5.1 month supply. Notably, the condo market is currently performing better than the single-family market, with only a 4.6 month current supply in condos (the 10-year average for condos is 7.9 months) while the single-family market is staying around 5.2 months (the 10-year average is 6.9 months).
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