It has been another recovery year in 2014 but not the same as 2013. With a One-Year Change in broad pattern of rising prices and stable to improving inventory, the market has shifted from being drastically undersupplied to approaching equilibrium. Price gains are still positive but less robust than last year. The metrics to watch in 2015 include days on market, percent of list price received and absorption rates, as these can offer deeper and more meaningful insights into the future direction of housing.
New Listings were down 46.4 percent for single family homes and 37.9 percent for Condo/TIC/Coop properties. Pending Sales decreased 25.4 percent for single family homes and 0.5 percent for Condo/TIC/Coop properties.
The Median Sales Price was up 14.0 percent to $1,080,000 for single family homes and 25.0 percent to $952,800 for Condo/TIC/Coop properties. Months Supply of Inventory decreased 33.3 percent for single family units and 33.3 percent for Condo/TIC/Coop units.
Interest rates remained lower than anyone expected for the entire year. That trend snowballed with solid and accelerating private job growth to empower more consumers to buy homes. This coupled nicely on the governmental side with mortgage debt forgiveness and interest deduction preservation. Student loan debt, sluggish wage growth and a lack of sufficient mortgage liquidity still remain hurdles to greater recovery.
Credit: SFAR Market Focus
