As the luke-warm summer season came to a close in September, the housing market showed one last hurrah in what is traditionally its most busy season. According the National Association of REALTORS®, existing home sales rose in September to their highest annual pace of the year after declining in August.
NAR calculates existing-home sales by adding up the completed transactions of all homes in the U.S., including single-family homes, townhomes, condominiums and co-ops. In September, this value reached a seasonally adjusted rate of 5.17 million. This was an increase by about 2.4 percent from August, which had a seasonably adjusted rate of 5.05 million.
In September existing home sales finally reached their highest pace for 2014. However, this year continues to be slower than the last as home sales are still 1.7 percent below September 2013, which saw a rate of 5.26 million units.
“Low interest rates and price gains holding steady led to September’s healthy increase, even with investor activity remaining on par with last month’s marked decline,” said Lawrence Yun, chief economist for NAR. “Traditional buyers are entering a less competitive market with fewer investors searching for available homes, but may also face a slight decline in choices due to the fact that inventory generally falls heading into the winter.”
Inventory has been a large factor in the stalwart market throughout this year. September showed fewer homes for sale than in August at 2.30 million homes, representing a 5.3-month supply at current sales pace. Despite this drop, this is still a somewhat healthy, if not improving, level for the national housing market as it is 6 percent higher than a year ago. The current inventory is also just below the six-month supply, which is generally considered a healthy rate by economists.
Beverly Hills Inventory Continues to Gain
While the rest of the nation struggles under falling inventory levels, the luxury properties of Beverly Hills are striving to keep home buyers interested. According to Altos Research, a California-based real estate analytics company, the supply of available homes in Beverly Hills has been on the upswing since about mid-April.
The rise has been slow, and still has not broached the 12-month high seen around this time last year, however Beverly Hills’ current inventory of 170 available homes is enough to indicate a healthy buyer’s market. Altos uses a unique value known as the Market Action Index to compare buyer and seller activity on the market using 30 as its neutral value. Beverly Hills’ MAI comes in at 27.87, just below neutral indicating that there are just slightly more homes on the market than interested buyers, however given the exclusivity of this luxury market, this really comes as no surprise.
The buyer advantage has also helped to bring home prices down just a tick. As of October 17, the median single-family home value in Beverly Hills is $4.046 million.
If you are interested in learning more about luxury properties in Beverly Hills, please allow one of our agents to show you around this luxe community.