Last year was a good one for housing; does 2017 have any hope of measuring up?
DES PLAINES, IL — February 9th, 2016 — Summit Valuations, LLC, a full service valuation company, announced today the release of its February Residential Real Estate Market Overview based on data compiled in December 2016, the most current industry information available. This month’s report includes an analysis of 2016 performance from Summit’s Chief Valuation Officer, Mark Melikian, author of the report, as well as a projection for what we can expect in 2017.
“Looking back at the performance of the US residential housing market in 2016, we see a lot of fluctuation in all six of the data categories that we tracked last year,” Melikian said in his report. “The most significant of these was the year to date increase (January – December) in median price. At 8.7%, this is the greatest home price appreciation we’ve seen on a national basis in the past three years. According to statistics from the National Association of Realtors®, the annual increase in median price during 2014 was 5.7%, in 2015 it was 6.8%.”
Changes observed in the other metrics Melikian tracks in his monthly market report include,
The median sales price of an existing home was $213,700 in January. It peaked at $247,600 and ended the year higher at $232,200.
The seasonally adjusted annual rate of homes sold began the year at 5,470,000, dropped to a low of 5,070,000 in February, then ended the year higher at a rate of 5,490,000 homes sold.
There was a four-month supply of existing homes for sale at the beginning of the year. It rose steadily to a high of 4.7 months in May and July, then dropped to its year end level of 3.6 months.
The pending home sales index in January was 105.4, it spiked to 115 in April and has ended the year higher at 109.
The unemployment rate started the year at 4.9%, rose to 5% in March, April, and September, then went down to 4.7% at the end of the year.
Mortgage interest rates for a 30-year fixed rate averaged 3.87% in January, dropped to 3.44% in July and August, then increased to end the year at 4.2%.
“With housing starts remaining at a relatively low level and inventory levels at a year-long low, we can expect to see fewer transactions coupled with price appreciation into the first quarter of 2017,” Melikian said. “However, a significant move in mortgage interest rates will likely have an impact on the rate of sales and, longer-term could impact housing prices. These statistics will continue to be presented and analyzed in subsequent reports.”
On a regional level in December, the South had the highest number of existing home sales and the West had the highest median price. The Northeast, Midwest and West experienced declines in the number of seasonally adjusted existing home sales while the South remained level. The Northeast experienced the highest increase in median sales price at 2.8%, month over month.
Summit’s report provides data made public by the U.S. Government, the National Association of Realtors and Freddie Mac. Melikian has been appraising real estate since 1987 and has been active in nationwide valuation services since 2005. He has successfully led teams of analysts, developed valuation services to meet client needs and represented buyers and sellers in secondary market loan tie out meetings. Much of his recent experience has focused on forensic reviews of REO properties for Fannie Mae and Freddie Mac. Mr. Melikian holds a B.S. in Business Administration from San Diego State University.
About Summit Valuations:
Summit Valuations, LLC, Niles, Illinois, was established in 2007 as a full service valuation company offering a single source for nationwide real estate valuations, including residential and commercial BPOs, inspections and full appraisals. The founders applied over 20 years of national real estate experience to build a company that has built its reputation based on higher standards and superior results. All reports can be delivered to our customers via email or downloaded from our secure website. The company’s services are designed to offer faster turnaround times, thorough quality assurance, streamlined ordering and delivery processes, and accurate results. As one of the fastest growing property valuation companies in the country, Summit is dedicated to accuracy and unparalleled customer service. Find out more by visiting the company’s website.
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