In The Ring

Existing-home sales stepped out to a fast start in 2017, surpassing a recent cyclical high and increasing in January to the fastest pace in almost a decade, according to the National Association of Realtors. All major regions except for the Midwest saw sales gains last month.

Experts agree that 2017 is off to a strong start “despite a limited supply of properties-for-sale and rising prices”, according to the Wall Street Journal, also reporting that, “U.S. home sales rose in January to the highest level since February 2007.” A few contributing factors are in the lead, all of which are igniting a newfound aire of momentum in the industry. With inventory levels steady at low, “marking the 20th consecutive month of annual declines”, according to Housingwire.com, a spark in confidence is bench pressing the buyer’s market and it’s holding steady. NAR chief economist, Lawrence Yun, asserts, “Much of the country saw robust sales activity last month as strong hiring and improved consumer confidence...have sparked considerable interest in buying a home,” and further contends that, “the housing market is off to a prosperous start as homebuyers staved off inventory levels that are far from adequate.” All things considered, this buyer strong arm is exactly the force needed to shove other mediocre market conditions aside.

Moreover, experts agree that as buyers work it out, the housing arena can brace itself for a brawny year ahead. Svenja Gudell, chief economist for Zillow, excercises her opinion with, "Overall, this is an exceptionally strong way to start the year, and it's clear that demand is likely to continue to be very high as the market enters the spring," as reported by The Wall Street Journal. Similarly, Nela Richardson, chief economist for Redfin Corporation, states, "Buyers are in force in 2017," as reportdly, the firm "is seeing the highest demand for homes...since January 2013". Without a doubt, as competition gears up for spring, this restored body of purchasing power is ready for the ring. And with buyers in flex, this year's market crunches are not projected to win the match.

Source: California Association Of Realtors January 2017
Article courtesy of JMJ Financial Group

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