2017 saw existing home sales rise 1.1% to 5.51 million, the best year since 2006. Several factors contributed to sales growth, e.g., lowest unemployment in several years, elevated household confidence, growing economy, low mortgage rates and expectations of a Trump tax reduction. The median sales price for existing homes was $246,000 at the end of 2017. This is up 5.8% from 2016.
An estimated 608,000 new homes were sold in 2017, according to U.S. Census Bureau and the Department of Housing & Urban Development. This is 8.3 percent above the 2016 figure of 561,000. The median sales price of new houses sold in December 2017 was $335,400. The average sales price was $338,900.
The seasonally-adjusted estimate of new homes for sale at the end of December was 295,000. This represents a supply of 5.7 months at the current sales rate.
National average for 30 year mortgage money is 4.24%. 15 year money is at 3.68%. 5/1 arms
are at 4.23% and Jumbo loans are at 4.52%.
Builder confidence in the market for newly-built single-family homes rose to a level
of 72 in January 2018 up from 68 in January 2017, per the National Association of Home Builders/Wells Fargo Housing Market Index
Existing home sales are expected to rise 2.8% above the 2017 levels in 2018 to 5.8 million
(Realtor). A record high stock market, partially created by the passage of the Trump/Republican tax
bill, low unemployment, record job creation, rising consumer confidence, pent-up household formation and a growing economy are
giving more Americans the assurance and ability to purchase a home.
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