Helping Seniors Sell Their Homes in Boston Area

Why Has Housing Supply Increased as Sales Have Slowed Down?


Newton, MA. Real Estate, Compass, Newton Top Brokers, Sotheby’s

Why Has Housing Supply Increased as Sales Have Slowed Down?

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,” said Fannie 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.

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.

Use the buttons below to share with your Personalization Profile…
       
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.

Leave a Reply

Logged in as Margaret SzerlipLog out?

Comment

Newton Home Sellers—-WE NEED YOU!


Home Sellers —- WE NEED YOU! Sellers now is the time!  All the cards are stacked in your favor– low-interest rates, low inventory, many buyers, stable lending– it doesn’t get any better.  There is only one condition–your property must be priced accordingly.  The neighborhood, the street, the condition of the home, the competition are all factors in a successful sale, and they all must line up.  This is not a time to be greedy but a time to be optimistic. The Spring market starts in late January or early February here in Newton.  If you are considering selling your home this Spring, don’t wait any longer , call or e-mail me today so we can be sure your home is in top condition.  I have the tools, the resources and the know how to help you achieve your goal for a successful home sale.  I work with a variety of trades people to help you eliminate clutter, touch up paint, fix a few broken items, and most importantly a thorough cleaning to help your home sparkle.  I also work closely with Laurie Nordman from Next Stage Associates if you just don’t know where to begin.  Laurie and her team can handle any size job.  Next Stage also does a superior job with Seniors, so if you or your parents are considering a move they are the exactly the people you should call. Margaret Szerlip  margaretszerlip@gmail.com  617-921-6860

Steve Blank

Entrepreneurship and Innovation

247NewsFinance

247 News Finance

Szerlip's Real Estate Blog

Realtor: Newton, West Newton Hill, Brookline, Chestnut Hill, Weston and Wellesley, MA. Real Estate

TechCrunch

Startup and Technology News

Koke's Journal

Mobile Engineer @ Automattic, making WordPress for iOS

The Wellesley Real Estate Blog

Everything You Wanted to Know About Wellesley, Weston, Dover, Needham, Metrowest

Elements of Style Blog

Realtor: Newton, West Newton Hill, Brookline, Chestnut Hill, Weston and Wellesley, MA. Real Estate

Panning The Globe

Food Blog with great recipes from around the world

SvR Designs

Decorative painting, faux finishing and design.

MassLawBlog.Com

This site focuses on Gesmer's practice areas (IP, business litigation, Internet Law, antitrust and practice in the Massachusetts state and federal courts).

Project Instead

What's Your Instead?

Wmontero's Blog

Just another WordPress.com site

Gardeninaday's Blog

Just another WordPress.com site

newtonmassrealestate

Just another WordPress.com site

My Blog

Just another WordPress.com site

Allison Blank Real Estate

newton and brookline home and life

The Gates Report

Free advice for companies and their customer service

%d bloggers like this: