As 2016 comes to a close, real estate trends provide good news for home sellers. The Wall Street Journal reports, "Housing demand remains resilient despite rising prices and shrinking inventory." In October, and for the second month in a row, existing home sale activity increased to a new cyclical high. This lively activity is in spite of rising home prices and a limited inventory. 

However, Business Insider reports that, also in October, new home sales fell 1.9 percent. Economists had been expecting a dip of only 0.5 percent in month-over-month sales. Nevertheless, new homes are only spending roughly 3 months on the market before a sale. This indicator shows there is a demand. There just has not been enough done to keep up with buyers.

Ultimately, the fundamentals of the real estate market are good. Low unemployment, increasing wages, and still low mortgage rates are encouraging home buyers. Still, the tight supply could cause the housing market to cool. According to the National Association of Realtors, housing inventory has decreased, on a year-over-year basis, for the last 17 months, causing home prices to increase faster than wages. 

Regardless, buyers are still willing to buy, creating a seller's market in many areas of the country. However, the trend could end up pricing many prospective buyers out of the market. Ultimately, if you are thinking about buying or selling, the best time is now. It is never a good idea to try to predict the market. However, current real estate conditions are ideal for both buyers and sellers, which does not often happen. Waiting until the spring and summer real estate season could create unfavorable conditions on both sides.

What haven't we covered yet that is important to you? If you would like to talk about new or existing home sales, or need more information, please contact us.