STATEN ISLAND, N.Y. (August 2018) – Home sellers on Staten Island were encouraged in July, as Months Supply of Inventory was down 5.9 percent to 5.1 months, according to the latest data from the Staten Island Multiple Listing Service (SIMLS).
The month showed home prices continuing to gain traction, with the Median Sales Price increasing 11.1 percent to $561,000. Days on Market was up 4.6 percent to 76 days.
New Listings in Staten Island increased 3.4 percent to 604. Pending Sales were up 9.8 percent to 436. Inventory levels fell 1.0 percent to 1,984 units.
Housing price bubble chatter has increased this summer, as market observers attempt to predict the next residential real estate shift. It is too early to predict a change from higher prices and lower inventory, but the common markers that caused the last housing cooldown are present.
Wages are up but not at the same pace as home prices, leading to the kind of affordability concerns that can cause fewer sales at lower prices. At the same time, demand is still outpacing what is available for sale in many markets.
Consumer spending on home goods and renovations are up, and more people are entering the workforce. Employed people spending money is good for the housing market.
Meanwhile, GDP growth was 4.1 percent in the second quarter, the strongest showing since 2014.
Housing starts are down, but that is more reflective of low supply than anything else.
With a growing economy, solid lending practices and the potential for improved inventory from new listing and building activity, market balance is more likely than a bubble.