Real Estate Summary, July 2018

Average Sale Price

  • $238,655, Jul 2018, 4.9% increase 1-yr, 37.2% increase 10-yr
  • $227,572, Jul 2017
  • $173,940, Jul 2008

The year-over-year increase in price for July 2018 compared with the YoY increase in July 2017 is less, so the increase has slowed. The YoY increase in July 2017 was 6.4%. From the MLS chart, the last time that the price increase was this slow was late 2014, so it appears by that measure the market has cooled off a bit, or is just a bit less hot. The price still increased don’t forget. That is good. The last time there was an overall YoY price decrease was 2011.


Months Supply of Inventory

  • 1.9 months, Jul 2018
  • 11.2 months, Jul 2010 – highest for July in last 10 years.
  • 2.0 months, Jul 2017 – last year’s hot market

We are still in a historical seller’s market.


Interest Rate, 30 Year Fixed-Rate Mortgage

  • 4.54%, 6 Sep 2018, most recent
  • 4.46%, 8 Mar 2018
  • 3.95%, 4 Jan 2018
  • 3.41%, 7 Jul 2016, 5-year low
  • 6.04%, 20 Nov 2008, the last time rate was over 6%

How much has the 30-year fixed rate gone up? It increased above 4% in January this year, reached 4.46% by March, and has held steady since then. The five year low was 3.41% in July 2016. Check out this interactive chart from Freddie Mac:

What To Do, Sellers

Hold tight. The demand is still there.

What To Do, Investors

  1. Do: Improve / develop what you already own, and get it performing.
  2. Do: take opportunity to start as a wholesaler / real estate agent / manager.
  3. Don’t: buy on a variable rate loan.

Source: Nate’s decision making model for real estate.

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