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Strong Market into Fall
CLICK THE PLAY BUTTON ABOVE TO LISTEN!
They say for every action there is an equal and opposite reaction. Well friends, that saying not only applies to Sir Isaac Newton's third law, but also for the economics of real estate.
As we have covered before, the United States is currently facing an inventory problem. This problem is reflected through research that shows there are not nearly enough homes for sale to satisfy the demand of prospective homebuyers. For those selling and their corresponding listing agents, this has been a wonderful environment for capturing the greatest amount of money for their home, and in commission compensation.
The median existing home price for all housing types in July was $258,000, which is up 6.2% from this same time last year. July's price increase marks the 65th straight month of year-over-year gains.
With that being said, there is a downside – skyrocketing home prices makes it more difficult for these same prospective homebuyers to actually afford the homes they want to buy. As a result, for the first time since 2015 existing home sales have fallen in back-to-back months, down 2.0% in June and 1.3% in July.
Total housing inventory at the end of July dropped to 1.92 million existing homes available for sale, and is now 9% lower than a year ago, now having fallen for 26 consecutive months.
The combination of these factors has lead NAR's Chief Economist Lawrence Yun to become increasingly more worried about the state of the market, saying: "July was the fourth consecutive month that the typical listing went under contract in under one month,"... "This speaks to the significant pent-up demand for buying rather than any perceived loss of interest. The frustrating inability for new home construction to pick up means inadequate supply levels will keep markets competitive heading into the fall." He continues by saying "Home prices are still rising above incomes and way too fast in many markets."... "Realtors continue to say prospective buyers are frustrated by how quickly prices are rising for the minimal selection of homes that fit buyers' budget and wish list."
We ask you, our listeners and real estate partners…what are you seeing? Have these observations been prominent in your current experience? If so, does this mean now would be a good time for the Fed to start hiking rates again?
Want to join us?
Thank you all for listening. We're always here to support you, so connect get with us on Facebook or LinkedIn @mattweaverspeaks.
If you have a real estate topic for our next shot or blog, please shoot us a message on Facebook @mattweaverspeaks, we love listener requests!
If you're in the South Florida area and want to meet for lunch, send me a message on LinkedIn and let's get something on the calendar!
The views of this blog, "Your Morning Shot" podcast, and on this site in general are solely those of the authors, Matt Weaver (NMLS-175651) and Zack Lewis, and do not express the views or opinions of Finance of America Mortgage.
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By Matt Weaver, Zack LewisCLICK THE PLAY BUTTON ABOVE TO LISTEN!
They say for every action there is an equal and opposite reaction. Well friends, that saying not only applies to Sir Isaac Newton's third law, but also for the economics of real estate.
As we have covered before, the United States is currently facing an inventory problem. This problem is reflected through research that shows there are not nearly enough homes for sale to satisfy the demand of prospective homebuyers. For those selling and their corresponding listing agents, this has been a wonderful environment for capturing the greatest amount of money for their home, and in commission compensation.
The median existing home price for all housing types in July was $258,000, which is up 6.2% from this same time last year. July's price increase marks the 65th straight month of year-over-year gains.
With that being said, there is a downside – skyrocketing home prices makes it more difficult for these same prospective homebuyers to actually afford the homes they want to buy. As a result, for the first time since 2015 existing home sales have fallen in back-to-back months, down 2.0% in June and 1.3% in July.
Total housing inventory at the end of July dropped to 1.92 million existing homes available for sale, and is now 9% lower than a year ago, now having fallen for 26 consecutive months.
The combination of these factors has lead NAR's Chief Economist Lawrence Yun to become increasingly more worried about the state of the market, saying: "July was the fourth consecutive month that the typical listing went under contract in under one month,"... "This speaks to the significant pent-up demand for buying rather than any perceived loss of interest. The frustrating inability for new home construction to pick up means inadequate supply levels will keep markets competitive heading into the fall." He continues by saying "Home prices are still rising above incomes and way too fast in many markets."... "Realtors continue to say prospective buyers are frustrated by how quickly prices are rising for the minimal selection of homes that fit buyers' budget and wish list."
We ask you, our listeners and real estate partners…what are you seeing? Have these observations been prominent in your current experience? If so, does this mean now would be a good time for the Fed to start hiking rates again?
Want to join us?
Thank you all for listening. We're always here to support you, so connect get with us on Facebook or LinkedIn @mattweaverspeaks.
If you have a real estate topic for our next shot or blog, please shoot us a message on Facebook @mattweaverspeaks, we love listener requests!
If you're in the South Florida area and want to meet for lunch, send me a message on LinkedIn and let's get something on the calendar!
The views of this blog, "Your Morning Shot" podcast, and on this site in general are solely those of the authors, Matt Weaver (NMLS-175651) and Zack Lewis, and do not express the views or opinions of Finance of America Mortgage.