| August 2016 Market Update |
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Home sales in June surged to their highest level in years, putting 2016 on track to be the best year for home sales since the recession. Near rock-bottom mortgage rates continue to lure more and more buyers into the market despite steadily rising prices and low inventory levels.
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| Interest Rates |
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 Interest rates decreased slightly from the month prior and remain near all-time lows. Mortgage rates have declined recently due to the drop in U.S. Treasury rates created by the uncertainty surrounding the U.K.’s vote to leave the European Union.
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| Home Sales |
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The National Association of REALTORS® reported home sales at a seasonally adjusted annual rate of 5.6 million homes during the month of June. This was an increase of 1.1 percent from May, and an increase of 3.0 percent from June of last year.
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| Home Prices |
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The median home price reached a record $247,700 in June, which was up 3.7 percent from May and up 4.8 percent from June of last year. The median home price has increased by nearly $11,400 in the past year alone.
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| Inventory |
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There was a 4.6-month supply of housing inventory in June, which decreased slightly from May. The total number of homes for sale decreased by 6.1 percent compared to June of last year. Strong demand spurred by dropping interest rates will likely keep inventory levels suppressed, particularly in the starter home market.
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Brought to you by KW Research. For additional graphs and details, please see the This Month in Real Estate PowerPoint Report.The opinions expressed in This Month in Real Estate are intended to supplement opinions on real estate expressed by local and national media, local real estate agents and other expert sources. You should not treat any opinion expressed on This Month in Real Estate as a specific inducement to make a particular investment or follow a particular strategy, but only as an expression of opinion. Keller Williams Realty, Inc., does not guarantee and is not responsible for the accuracy or completeness of information, and provides said information without warranties of any kind. All information presented herein is intended and should be used for educational purposes only. Nothing herein should be construed as investment advice. You should always conduct your own research and due diligence and obtain professional advice before making any investment decision. All investments involve some degree of risk. Keller Williams Realty, Inc., will not be liable for any loss or damage caused by your reliance on information contained in This Month in Real Estate.
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