Summer is in full swing. Real estate activity remains steady but is typically slower as families are away on vacation. Let’s review 2014 to date. The January – April market started strong. As usual, the spring market was our HOT market, yet certain factors slowed sales. Now the summer season is a time for some good buys. Let’s watch DOM, or Days on Market. The longer a home has been on the market, the higher the chance for a good deal.
So what factors slowed sales? Lawrence Yun, NAR’s Chief Economist, reported recently that “Activity is affected by supply shortages, flat wages, and tight credit conditions. A high number of potential buyers are deterred from fully taking advantage of lower interest rates. Price appreciation nationwide has decreased to it’s slowest pace since March of 2012.”
Yun predicts that the national median existing-home price is projected to grow between 5 – 6% this year and in 2015. Of course, in areas of huge demand such as Silicon Valley and San Francisco, the job market continues to push real estate to new levels.