The major data reports for January have now been released, giving a clear view of how the real estate market is faring so far in 2016. The good news is; things are looking positive.
Job creation which has a huge impact on the real estate market continues at pace. In January over 151,000 jobs were created pushing unemployment to near 10-year lows. This level of employment growth should translate into the 3% growth in housing sales that analysts are expecting to see in 2016.
January’s existing home sales report was also very positive. Despite the fact that sales are now taking longer to close due to the implementation of new disclosure and closing forms and procedures, existing home sales grew 0.4% in January. Whilst this may not seem like a huge increase, it is a great improvement on the declines analysts had been expecting. In addition, existing home sales grew a very impressive 11% year on year.
The increase in sales seen in January has resulted in an even tighter supply of housing. The National Association of Realtors estimate that January only had four months’ supply of housing stock. With six to seven months’ worth of homes on the market considered normal, these levels are continuing to drive prices higher.
In addition to the positive data, analysts have confirmed that demand has grown rapidly at the start of the year. This has resulted in an acceleration in inventory movement that is not normally seen until March or April. With such a strong start to 2016, many are predicting great things for the real estate market this year.