https://www.google.com/analytics/web/#home/a69066132w111663562p116541675/

Why Has Housing Supply Increased as Sales Have Slowed Down? #TimeToBuy

Dated: 11/07/2018

Views: 8

BY 
Real Estate Agent with Allison James Elite CA. BRE 01501699
 

#5StarREALTOR®

Your home is probably the biggest asset you own. This is why you should hire a professional to guide youthrough all your real estate transactions. My goal is to help 24 to 28 families each year either buy or sellhome. I am NOT interested in Selling 100 or 200 homes a year because I would not be able to give each family the time, attention and energy they deserve.....

Why Has Housing Supply Increased as Sales Have Slowed Down? | MyKCM

According to the latest Existing Home Sales Report from the National Association of Realtors (NAR), the inventory of homes for sale this year compared to last year has increased for the last four months, all while sales of existing homes have slowed compared to last year’s numbers.

For over three years leading up to this point, the exact opposite was true; Inventory dropped as sales soared.

NAR’s Chief Economist Lawrence Yun shed some light on what could be contributing to this shift,

“This is the lowest existing home sales level since November 2015. A decade’s high mortgage rates are preventing consumers from making quick decisions on home purchases. All the while, affordable home listings remain low, continuing to spur underperforming sales activity across the country.”

Let’s take a deeper look:

Interest Rates

Since January, 30-year fixed mortgage interest rates have increased nearly a full percentage point (from 3.95% to 4.9%). Fannie Mae, Freddie Mac, the National Association of Realtors, and the Mortgage Bankers Association are all in agreement that rates will continue to increase to about 5.2% over the next 12 months.

“The rise in [mortgage] rates paired with this very strong price appreciation absolutely is slowing housing,” saidFannie Mae’s Chief Economist Doug Duncan.

Even though rates are higher than they’ve been in a decade, they still remain below the average for the 1970s, 80s, 90s, and 2000s!

Mismatch of Inventory

Elizabeth Mendenhall, President of NAR, said it best, “Despite small month over month increases, the share of first-time buyers in the market continues to underwhelm because there are simply not enough listings in their price range.”

Prices of starter and trade-up homes have appreciated faster than their higher-priced counterparts. Over the last 5 years, the lowest-priced homes have appreciated by 47% while the highest-priced homes have appreciated by only 24%.

According to the Institute of Luxury Home Market’s Luxury Market Report, the $1M-and-up price range is now experiencing a buyer’s market. This means that supply (inventory) has finally caught up with demand and buyers are in the driver’s seat when it comes to negotiations. Additionally, many listings in this price range have experienced price cuts in order to entice buyers to put in offers.

Natural Disasters

Although not fully to blame for the national shortage in sales and inventory, natural disasters like Hurricane Florence, Hurricane Michael, and the wildfires on the West Coast have certainly had an impact.

Bottom Line

Additional inventory coming to market could help normalize the housing market and allow incomes to catch up to home prices. For more information about sales and inventory in our area, let’s get together so we can help you make the best decision for you and your family.

About Me

My photo
 

Chris B. Johnson is a REALTOR® who Specializes in Short Sale and REO Transactions. Chris has been Certified as a California Association of Realtors HAFA Specialist, a National Association of Realtors Short Sale and Foreclosure Resource, Chris B Johnson Realtor is a Certified Distressed Property Expert, Certified Short Sale Negotiator, Certified Default Advocate and Certified Pre-Foreclosure Specialist. With a full time staff dedicated to short sale negotiations and transactions, we have been successful with (almost) every short sale to date.  LinkedIn Pro    UpNest    What's Your Home Worth?

 

 

The information contained, and the opinions expressed, in this article are not intended to be construed as investment advice. Keeping Current Matters, Inc. does not guarantee or warrant the accuracy or completeness of the information or opinions contained herein. Nothing herein should be construed as investment advice. You should always conduct your own research and due diligence and obtain professional advice before making any investment decision. Keeping Current Matters, Inc. will not be liable for any loss or damage caused by your reliance on the information or opinions contained herein.

RateMyAgent VC 5 Star Rated Realtor ChrisBJohnsonRealtor on YouTube.

RateMyAgent :

Sell Your Home For More and Pay Less Using A 5 Star Rated Realtor https://youtu.be/CRCXLh4EycU 

Sell Your Home For More For More and Pay Less Using A 5 Star Rated REALTOR®.

POSTED BY

Blog author image

Chris B Johnson

state_license/dre/bre_number: CalDRE 01501699....

Latest Blog Posts

Los Angeles County Mortgage Rates Take a Breather from Hikes #TimeToBuy #HyperLocal #ChrisBJohnsonRealtor

BY CHRIS B JOHNSONReal Estate Agent with Allison James Elite CA. BRE 01501699EMAIL  Share:November 17, 2018 01:16 PM https://activerain.com/droplet/5gd9ortgage rates mostly held

Read More

The Cost of Renting vs. Buying a Los Angeles County Home #TimeToBuy #HyperLocal #ChrisBJohnsonRealtor

BY CHRIS B JOHNSONReal Estate Agent with Allison James Elite CA. BRE 01501699EMAIL  Share:November 16, 2018 10:34 AM http://www.ChrisBJohnsonRealtor.AllisonJamesInc.com/blog.php

Read More

Wage Increases Make Home Buying A Los Angeles County Home More Affordable #TimeToBuy #HyperLocal #ChrisBJohnsonRealtor

BY CHRIS B JOHNSONReal Estate Agent with Allison James Elite CA. BRE 01501699EMAIL  Share:November 15, 2018 09:39 AM http://www.ChrisBJohnsonRealtor.AllisonJamesInc.com/blog.php

Read More

Home Sellers in Q3 Netted $61K at Resale #TimeToSell #HyperLocal

Chris B Johnson REALTOR® - Luxury Home and Estate SpecialistYour home is probably the biggest asset you own. This is why you should hire a professional REALTOR® to guide you. I help 24 to 28

Read More