Note: The Comments below are from St. Louis REALTORS®
(Highlighted Text Are My Highlights)
As was widely expected, the Federal Reserve did not change the target range for the federal funds rate – currently set at 2.25 to 2.5 percent – during their June meeting. Although the economy is still performing well due to factors such as low unemployment and solid retail sales, uncertainty remains regarding trade tensions, slowed manufacturing and meek business investments.
New listings decreased 9.7 percent for residential homes and 2.6 percent for townhouse/condo homes. Pending sales increased 1.6 percent for residential homes but decreased 17.1 percent for townhouse/condo homes. Inventory decreased 21.3 percent for residential homes and 10.4 percent for townhouse/condo homes.
Median sales price increased 11.7 percent to $236,750 for residential homes and 0.6 percent to $166,000 for townhouse/condo homes. The average days on market increased 39.3 percent for residential homes and 5.6 percent for townhouse/condo homes. Months supply of inventory decreased 22.9 percent for residential homes and 5.7 percent for townhouse/condo homes.
In terms of relative balance between buyer and seller interests, residential real estate markets across the country are performing well within an economic expansion that will become the longest in U.S. history in July. However, there are signs of a slowing economy. The Federal Reserve considers 2.0 percent a healthy inflation rate, but the U.S. is expected to remain below that this year. The Fed has received pressure from the White House to cut rates in order to spur further economic activity, and the possibility of a rate reduction in 2019 is definitely in play following a string of increases over the last several years.
Understanding Supply and Demand
“Months of Inventory” is an important term in understanding home prices.
Whether it’s home prices in a school district, city, zip code, or county, knowing the months of inventory available is critical for a home buyer or seller to know. Call 636-532-4200 or email us for more information.
Months of inventory is the measure of how many months it would take for the current inventory of homes on the market to sell, given the current pace of home sales.Finding Homes for You
For example, if there are 50 homes on the market and 10 homes that are selling each month, there is a 5-month supply of homes for sale.
Interactive Map of Current Supply of Homes
Put your mouse or your finger over the blue circles in the image below and you’ll see the months of inventory in various communities. You’ll also see search results of homes for sale in each area.