Dr. Yun did a presentation on the "Economic and Housing Market Trends and Outlook" which has many good things to ponder if you are curious about what drives real estate values nationally. Among his points:
- Existing home inventory is near a 13 year low and looks to continue downward
- Months supply of inventory is running at about 5 months for both existing and new homes.
- Shadow inventory of homes in foreclosure or short sale have dropped and locally is significantly better in Virginia than Maryland.
- Housing starts are well below where they need to be to prevent a persistent housing shortage.
- 30 year fixed rate mortgages have been below 6% for 5 years
- Buyers have outnumbered sellers since January 2012
- The number of homeowner households have not grown since 2006 while renter households have grown since 2004, which signifies latent demand for home purchases.
- College debt is approaching $1 trillion nationally and nearly 1/5th of households have student loan debt which could affect ability to purchase a home.
There are many other great facts that I would love to share with you. I try to keep up with what is happening in our neighborhood, the county, the state and the overall real estate market by attending these types of presentations so that I can better serve my clients. To see the full presentation click here.
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