Real Estate News

High demand defines 2017 housing market going into summer

Published: 03 Jun 2017

June brings not just the beginning of the summer season but also the official end of the second quarter of 2017. As such, it's the start of a new part of the year, which may build off of the previous trends toward a scramble for purchases. More than one entity from the real estate industry seems to think that high demand is behind the current figures.

On May 30, Redfin presented information on the growth in housing demand between March and April, the latest jump after falling for multiple months. In a press statement, the source said that the new seasonally adjusted figure was 9.2 percent higher than the month before. Nearly seven percent more buyers wrote offers in March, after seasonal adjustments, the Redfin statistics also explained.

This matches reports from other bodies such as the National Association of Realtors, which acknowledged the intensity of the current market. The group's manager of economic research, Javier Vivas, referenced this in an article on the "hottest housing markets" of the country.

"With a record number of home buyers out there, this is officially the most competitive, fastest-moving spring housing market in decades," Vivas said.

Of the 20 different "hot" markets presented, nine were in California, including the top city, Vallejo. This ranking was apparently based on which places were seeing the most sales activity. Michigan was another well-represented state, with Ann Arbor, Detroit and Grand Rapids all making the list, with the last of these placing highest.

USA Today quoted Zillow chief economist Svenda Gudell, who mentioned some of the other factors that may influence the existing housing market, such as the low inventory that's paralleling the current high demand. Increases in prices may also male it easier for those buyers with the capital to purchase in tighter to compare themselves with each other.