New homes for sale near lowest level in 50 years
Housing inventory neared its lowest level over the past 50 years in October at 4.5 months, according to Pro Teck Valuation Services ctober Home Value Forecast Update.
“The U.S. housing market has entered a sustainable period of improving conditions led by very low mortgage rates, stable to rising home prices, declining unemployment, declining housing inventories and a strong rental market,” said CEO Tom O’Grady.
Low inventory levels are often reflective of significant price appreciation in the year to come. “The primary reason for the low months of remaining inventory for new single family homes is the historically low number of new homes for sale,” added O’Grady.
Nationwide new home prices have held up better than the price of existing homes, the update uncovered. According to O’Grady, the divergence in the recent down-cycle, despite new and existing home prices having tracked one another closely since the 1960s.
The most recent numbers revealed the median new single-family price has decreased less than 1% to $256,900 since its peak in 2006. Adversely, the national median existing single-family price has fallen 20% to $183,900 since peaking in 2006.
The October Home Value Forecast includes a list of the 10 best and 10 worst performing metros, according to a market condition-ranking model. “The top ranked metros are located in Texas and one is in Oklahoma, which confirms the strength of the real estate market in this part of the country,” said Michael Sklarz, Principal of Collateral Analytics and contributing author to Home Value Forecast.