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Sunday, October 21, 2018

GOOD NEWS/NOT SO BAD NEWS ABOUT HOUSING MARKET


RIS Media reported that the trends of fewer closings and stabilizing inventory continued through September, punctuated by a surprisingly big 12% year-over-year drop in national home sales, with median sales price of $241,000, marking the 30th consecutive month of year-over-year price increases, and the highest September price in the past 10-years.  Available inventory of homes for sale, dropped for the 119th consecutive month, according to the report, but the decline of appears to be lessening, a positive trend toward market equilibrium.

The Wall Street Journal reflects, “home-price growth has slowed for the last several months and is expected to continue slowing as mortgage rates rise. The volume of existing-homes sales has fallen compared with a year earlier for six straight months.”
The good news is that the state of the housing market is far less volatile than it was ten years ago.  Also new-home starts have been increasing but at more sustainable rates.  All reflected in a gradual improvement in the number of homes on the market. 
As home buyers and sellers, how does this affect you?  If you are selling your home, it’s important to price your home right, keep it in good repair and aggressively market your property.  If you are a buyer, the low inventory levels reduce the number of possibilities and tend to keep prices up, so act when you see something you like and you feel it’s priced right. 
The report also recommends that “in circumstances like these, where the market is tricky to navigate, both buyers and sellers can benefit by aligning themselves with a professional agent—a local expert who can cut through the noise and advocate on their behalf.”



Sources: RIS Media, Brand Report: Home Sales Tumble 12 Percent as Prices Remain at Record Levels, October 16, 2018; THE WALL STREET JOURNAL, The Soft but Stable Housing Market, page A2, October 15, 2018.


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