Realtors® remain confident about housing market

According to NAR’s Realtors® Confidence Index Survey, Realtors® are confident about the outlook for the housing market for single-family homes, townhomes and condominiums over the next six months.

Results showed that the confidence level is higher compared to last year, and is above 50.

Realtors® in Pennsylvania felt strongly confident about the next six months for both single-family homes and townhomes. However, Pennsylvania Realtors® weren’t as confident about condominiums over the next six months. Realtors® in the commonwealth also reported that the buyer traffic is strong, but with seller traffic registering as weak. Homes on the market in Pennsylvania generally stayed on the market for 46 to 60 days.

According to the survey, appraisal issues, decreasing affordability, a lack of inventory in the market and lender processing delays are the four main issues impacting sales across the country today.

Over the next year, Realtors® reported they expect price growth to slow down. In Pennsylvania, Realtors® said they expect the median price change to be between 2 and 3 percent.

Nearly one-third of residential sales in July were first-time homebuyers, a decrease of 1 percent from June, but an increase of 4 percent from July 2015. The report suggests this is thanks to increased job growth and low interest rates.  Former renters accounted for 41 percent of homebuyers, due to increasing rent prices.

However, while the median family income has increased 11 percent compared to January 2012, the median price of an existing home has increased 62 percent in the same time, making affordability an issue for many would-be buyers. The lack of inventory in the market has also led to multiple offers. In July, nearly half (41 percent) of homes were sold at or above their listing price, an increase of 5 percent compared to last July.