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Housing market trends down in June

Published:   |   Updated: July 15, 2013 at 09:33 AM

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The county housing market data is out for June and there's bad news pretty much in every key category.

The numbers come as a surprise, particularly since the market has shown steady improvement much of this year.

Single-family home sales for June totaled 250, down 18 percent from the previous month's figure of 306, according to statistics from the Hernando County Association of Realtors' multi-listing service.

Average sales price in June was $103,000, down from $112,000 in May.

The average days on the market ticked up slightly higher, from 93 last month to 96 in June.

There were 64 foreclosed home sales in June and 20 homes sold through short sales.

Marisa Brewer, broker with Preferred Property Associates, said she is not panicking from one bad month, especially when June typically skews lower because people are vacationing and doing other things than buying homes.

January through April showed a nice upward trend in sales and May held steady.

"It will start averaging back," Brewer said. "July looks like it is going to be a really good month."

Brewer said an uptick in the mortgage rate also may have contributed to the poor showing.

Investors making cash purchases are also a big influence in the market right now, she said. And cash buyers have the ability to negotiate home prices down a bit as opposed to people paying via the traditional mortgage route.

That could account for the drop in average home prices in June, Brewer said.

Meanwhile, a report issued this week by the National Association of Realtors (NAR) shows that older generations of home buyers prefer more recently built homes. So-called "Millenials," defined as people under 32, are gravitating toward new homes.

"Homeownership is an investment in your future, and is how many younger American families begin to accumulate wealth," Paul Bishop, NAR vice president of research, said in a press release.

"The oldest of the Millennial generation are now entering the years in which people typically buy a first home, and despite the recent downturn, homeownership still matters to them," Bishop said. "The sheer size of the Millennial generation, the largest in history after baby boomers, is expected to give a powerful boost to long-run housing demand, though in the short-term mortgage accessibility and student debt repayment remain challenges."

Brewer said she too has noticed an increase in families and Generation Y home buyers.

It's the children of the baby boomers who are active in the market now, she said.

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