As was widely expected, the Federal Reserve did not change the target range for the federal funds rate – currently set at 2.25 to 2.5 percent – during their June meeting. Although the economy is still performing well due to factors such as low unemployment and solid retail sales, uncertainty remains regarding trade tensions, slowed manufacturing and meek business investments.
New Listings decreased 1.7 percent for Single Family homes and 1.5 percent for Condominium homes. Pending Sales increased 11.3 percent for Single Family homes but decreased 2.5 percent for Condominium homes. Inventory decreased 14.6 percent for Single Family homes and 21.3 percent for Condominium homes.
Median Sales Price increased 3.4 percent to $750,000 for Single Family homes and 7.2 percent to $552,000 for Condominium homes. Days on Market decreased 27.3 percent for Single Family homes and 16.8 percent for Condominium homes. Months Supply of Inventory decreased 15.8 percent for Single Family homes and 11.4 percent for Condominium homes.
In terms of relative balance between buyer and seller interests, residential real estate markets across the country are performing well within an economic expansion that will become the longest in U.S. history in July. However, there are signs of a slowing economy. The Federal Reserve considers 2.0 percent a healthy inflation rate, but the U.S. is expected to remain below that this year. The Fed has received pressure from the White House to cut rates in order to spur further economic activity, and the possibility of a rate reduction in 2019 is definitely in play following a string of increases over the last several years.
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