July’s numbers mark the eleventh straight month of year-over-year gains, indicating the strong demand for homes, which are, however, in short supply. Lawrence Yun, NAR’s chief economist, said, “While demand and sales continue to be stronger than earlier this year, realtors have reported since the spring that available listings in affordable price ranges remain elusive for some buyers trying to reach the market and are likely holding back sales from being more robust.”
About 1.5 million homes are needed annually, according to economists. While the sector is producing only about 1.2 million a year, and it is the fastest pace since October 2007, it is not enough to meet demand. Yun predicts this will drive the national median existing home prices to rise 6.3 percent through the remainder of the year to $221,400, up from $208,100 in 2014.
Total existing-home sales for 2015 are anticipated to be around 5.29 million, a 7.1% rise over 2014, yet still 25 percent below the 2007 peak of 7.08 million. Last year sales finished at 4.94 million, 2.9 percent below 2013 levels of 5.1 million.
Yun notes the recent volatility on the stock market could cause some people to be more cautious and delay home purchases. He adds, “Uncertainty in the equity markets – even if the Fed raises short-term rates in September – could stabilize long-term mortgage rates and preserve affordability for buyers.”
Certainly, the opportunities for manufactured housing to tap into opportunities to work with the Real Estate sector to grow more sales abound. See this video with a real estate broker who has sold hundreds of manufactured homes, plus conventional housing too, at this link. ##
(Photo Credit: Paul Sakuma/AP).
