First Quarter Takeaway from Matthew Gardner: This speedometer reflects the state of the region’s housing market using housing inventory, price gains, sales velocities, interest rates, and larger economic factors. As you can see, we are still very clearly in the midst of a seller’s market, and unless we see a significant increase in listings, it will remain that way for the foreseeable future.
Price growth remains at healthy levels as inventory constraints persist. Interest rates are still at historic lows, and we expect that this will continue to be the case through 2015, which further favors conditions for home sellers. That said, obtaining a mortgage remains more difficult than it should be due to the ongoing implementation of the “qualified mortgage” rule which reduces access to financing to certain buyer segments.
To conclude, the region is in need of inventory and I hope that we will see a modest increase in listings as we move further into the late spring/early summer. Some are talking about the potential for another housing “bubble” given the lack of homes for sale and the bullishness of buyers in bidding up properties; however, I believe that there are sufficient safeguards in place so that we will not see this happen.
Read the full report on Windermere.com.