Real Estate News

January proves strong month for home sales

Published: 28 Feb 2017

Despite economic uncertainty, some forecasters have seen strong growth on the horizon for housing in 2017. The National Association of Realtors recently announced housing inventory growth for this January, with potentially important trends showing themselves.

In some cases, there were decreases, such as decline in the amount of days on average a home stayed on the market: this was 64 days in 2016 and just 52 this year. However, the most prominent statistic was the amount of home sales, according to a description in a statement from the NAR.

The January sales figures included 180 thousand more homes than that for December, and the first month of the new year also ended with the amount of homes for sale increasing 2.4 percent. The organization's chief economist, Lawrence Yun, said that this puts 2017 in a strong position, despite some challenges.

"Much of the country saw robust sales activity last month as strong hiring and improved consumer confidence at the end of last year appear to have sparked considerable interest in buying a home," Yun said.

Yun and the NAR also recently predicted a strong year of growth for commercial real estate in a recent outlook report for the first quarter of 2017. This report didn't just predict gains for real estate but for other economic indicators as well, with the GDP and consumer confidence levels set to grow.

Unemployment was also predicted to drop from 4.9 to 4.6 percent. The NAR added that vacancies in commercial real estate will likely recede for office, industrial and retail properties. Multifamily vacancies were set to sink to 6.3 percent, but then rebound, eventually predicted to reach a level of 6.8 percent by the third quarter of 2018. Industrial vacancies would drop by nearly 2 percent during this time.