The US Housing Market January 2018
Realtor.com carried out an investigation of the US housing market in January of 2018, comparing it to January of 2017. According to Forbes, these are the general numbers and how they compare to last year’s real estate market:
- Median House Price: $269,500, up 8%
- Days on Market: 89 days, down 7%
- Housing Inventory: 1.23 million listings, down 8%
From these numbers, there are three takeaways about the current housing market. The median house price is higher, meaning there is a rise in house prices. Even with this increase in house prices, an investment property doesn’t stay on the market longer than 3 months, showing high demand for homes and rental properties. With the average investment property selling in a relatively short time (compared to last year), housing inventory is coming up short. January saw 1.23 million investment property listings, 8% less than last year.
So, with these numbers, is the US housing market a seller’s market or a buyer’s market?
Seller’s market: The supply of homes for sale is less than the buyers in the real estate market; the demand for homes for sale is high.
Buyer’s market: The supply of homes for sale is more than the buyers in the real estate market; the supply is higher than the demand for homes for sale.
Essentially, all numbers point to a seller’s market for the current housing market. A real estate investor selling an investment property has more negotiating power than one buying an investment property.