How The Election Affects The Housing Market

The market is stabilizing. And unfortunately, it is doing so at levels that are not what we wanted from Santa! The total number of Active homes increased, albeit very slightly, to end the month at an even (400). Of these, (278) were New Homes and (122) were Resales. Both are statistically even with September. I am still looking for the totals to decrease though, especially as we enter the historically slower months ahead.

RESALES:

While preceding months were witness to Price declines, October witnessed a welcomed rebound, with Sales Prices jumping dramatically, by over 18%.  This may have been attributed to just a brief period of lower interest rates; however, rates have since risen again, now exceeding 6%.  Other trend lines such as Price Per Square Foot, the number Sold, and the Months of Supply closely mirrored September’s trends. Yet again, not rewarding results. Bah hum bug!

NEW HOMES:

There were not really any significant changes in October results. However, one concern is that while the number of homes Sold didn’t increase, the Months of Supply did; though both changes were minor.  In addition, it’s normal for Builders to cut Prices and offer major incentives at the end of the year to get completed homes off their “books.” So, there may be increased competition for the Resales, yet opportunities for Buyers.