April 19, 2018

For Real Estate Predictions, Go West

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For Real Estate Predictions, Go West

Housing analysts are closely watching the Western region’s housing market for signs of what may be to come for the rest of the country. After all, the West was the first region to crash in the mid-2000s, and the first region to start recovering. 

Therefore, some in the industry are alarmed that sales of existing homes fell by the most in the West in October, dropping 7 percent. The West was the only region in the U.S. that saw year-over-year declines in home sales, according to data from the National Association of REALTORS®

Existing-home sales nationwide dropped 3.2 percent in October. But the drop in sales in the West was largely due to a shortage of homes for sale. 

"In the West region, there is a significant shortage of inventory, so you have buyers who are looking for the right home unable to find it and unwilling to commit," says Lawrence Yun, NAR’s chief economist. "But because of the inventory shortage, one is still seeing strong price increases in the West." 

The median price for a California home was $357,000 in October, up more than 25 percent from year-ago levels, according to DataQuick research. 

“The rest of the nation did not see the same dramatic swings as most Western markets, but the supply, demand, and pricing dynamics are similar,” CNBC reports. “Prices are up over 12 percent nationally, and inventories are down across the nation. For those predicting the national housing market over the next six months, watching the West is a good idea.” 

Source: “Watch Out! Worrisome Housing Signs Appear in West,” CNBC (Nov. 20, 2013)

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