Market Conditions - July 4, 2006 by Carla L. Davis
The National Association of Realtors has reported that existing home sales "eased" in May. NAR chief economist, David Lereah, notes, “There’s now a clear pattern of slower home-sales activity in many higher cost markets, which are more sensitive to rises in interest rates, and higher home sales in moderately priced areas which have experienced job growth. Although mortgage interest rates remain historically low, the uptrend in interest rates this year is affecting those buyers who are at the margins of affordability.” As in months past, conditions vary by region, affected largely by local economies and buyer turnout. As fewer buyers feel confident venturing into the market at this time, inventories continue to rise. Total housing inventory levels rose 5.5 percent at the end of May to 3.60 million existing homes available for sale. The Midwest has seen a 5.6 percent decline in the number of sales from last year. The median price was up only marginally -- up 1.2 percent to $174,000. Oklahoma City, Oklahoma, is one of the larger cities in the Midwestern region, and perhaps an exception to the rule. Experts are reporting that this market is neutral in favor at this time, but sales are increasing -- as much as 34 percent when comparing first quarter 2005 with first quarter 2006. This is directly linked to above average job growth. But the majority of Midwestern cities are experiencing a linear market -- with consistent appreciation rates from 1 to 6 percent annually. | 
