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Last month I discussed whether it was a “great time to list your home?” I commented on the lack of inventory coupled with high demand for housing and the dilemma of those factors not forcing an increase in home values. We posed the question of why the law of supply and demand didn’t seem to be in affect in our area.
Well, that question was answered in a resounding way. In a review of the April 2017 sales statistics, our high demand rewarded home sellers with an increase in current average sales price of 25.6%.* This represents a real dollar average increase of $50,483. The current median sales price has also increased by $19,250.* Remember, the median sales price reflects the mid-point of the market, meaning there were an equal amount of sales both above and below that price point. This increase in the median sales price tells us that the increases are not just the result of a handful of high priced sales driving the average, but that the market as a whole is showing improvement.
This is a great sign for our area and for residents who would like to list their home but have been lacking the equity to do so. This increase in sales price also bodes well for future sales that rely on these current “sold comparable homes” that are used by appraisers. Since appraised values are based on the most recent homes sales, the closed sales in April will help support current values.
Only time will tell if this increase will become a trend and not just a one time “blip” on the radar. What I can tell you is that I still consistently hear stories from home buyers, sellers, and realtors that quality homes are receiving multiple offers, above asking price, on the first day being listed. Bidding wars are now commonplace with new homes coming on the market.
It is important to remember that there are always two sides to every situation, and rising home prices, while beneficial to sellers, can be detrimental to some buyers. Once home prices rise to the level where it affects market affordability we will see the ebb and flow of supply and demand begin to move prices against sellers.
Let’s all hope that change does not come soon and we can allow housing appreciation to benefit our homeowners and allow some much needed inventory to enter the market.
*Mid Hudson MLS, April 2017 Sales Statistics