Real Estate News

Could residential real estate stand out against commercial?

Published: 30 Mar 2017

When other types of property become more expensive, housing gains could become continually apparent. The online real estate business Ten-X reported that apartment pricing was stronger than other comparative markets recently.

The company announced the result of its latest price index, also known as a "nowcast," which showed an overall downward trend for the commercial real estate market in general. However, the source did note that apartments have done well for most of the country, including a 15.4 percent pricing jump in the span of a year. Compared to other segments, this could be a good sign of strength for apartments in general.

This isn't to say that there aren't challenges for homes. In another recent statement, National Association of Realtors Chief Economist Lawrence Yun discussed the conflict between supply and demand still seen in homes in 2017. He specifically said that prices are going up in part because of a shortage in affordable residences.

"Newly listed properties are being snatched up quickly so far this year and leaving behind minimal choices for buyers trying to reach the market," Yun explained. "A growing share of homeowners in NAR's first quarter HOME survey said now is a good time to sell, but until an increase in listings actually occurs, home prices will continue to move hastily."

The release also said that the amount of investor-purchased homes in February was 2 percent higher than the previous month. More than a quarter of the month's sales (27 percent exactly) were made up of cash only.

Yun said that investor willingness to pay in cash signals possible "financial wherewithal." The statement also said that homes spent five fewer days on the market in February than they had in January.