May Homes Sales Pace Record

Redfin reports that the pace of Home sales for May 2016 was the fastest on record. The average home in the US went under contract in 42 days, seven days faster than May 2015 and the shortest time since Redfin started tracking the duration in 2009. The pendulum has swung from five years of of under-occupied housing stock between REO houses that were empty pending or after foreclosure, short sales, long transaction cycles, now you have the most-occupied housing perhaps ever. And the sources of new supply for the market are not promising:

  • Homeowners refuse to list since they do not know what house they could buy
  • Millennials live with their parents or in larger group settings to save costs
  • Builders cannot afford lot costs to build for the first-time home buyer
  • Mortgage lenders with favorable rates remain cautious about conventional loan approval and down payments