July 2016 Monthly Market Snapshot
August 22, 2016 at 10:01 AM
Monthly Market Indicators
Even as prices rise in many communities, homes are selling faster now than they have in the past several years. This creates a situation where buyers need to move fast in order to secure homes, and they may have to pay more for them. While increasing prices generally coax more selling activity, there has been some hesitancy among potential sellers who worry that they will not be able to buy a desirable and reasonably priced home once they sell.
New Listings in Harrisburg decreased 9.5 percent to 19. Closed Sales were down 16.0 percent to 21. Inventory levels fell 3.8 percent to 50 units.
Prices continued to gain traction. The Median Sales Price increased 2.5 percent to $204,900. Days on Market was up 46 percent to 117 days. Months Supply of Homes for Sale was up 2.7 percent to 3.2 months.
Low housing supply has already prevented an outright national boom in sales activity, despite a continuation of near record-low mortgage rates and an unemployment rate under 5.0 percent deep into 2016. The issue is not purchasing power. Many areas are falling behind last year's closed sales totals simply because of lack of available inventory. As this continues, higher prices may put a deeper squeeze on the current buyer pool.
Housing Supply Overview
Even as sales activity slows due mostly to a lack of inventory prices continue to rise in several submarkets. For the 12-month period spanning August 2015 through July 2016, Closed Sales in Harrisburg were down 4.0 percent overall.
The overall Median Sales Price was up 6.7 percent to $199,600.
Market-wide, inventory levels were down 15.2 percent. The price range that lost the least inventory was the $200,001 to $300,000 segment, where it decreased 4.7 percent. That amounts to 4.0 months supply for Single-Family homes and 3.1 months supply for Condos.