Housing Market Trying to Find Balance
According to Realtor.com's
National Housing Trend Report for the month of July 2013, the nation experienced
a 5.24% decline in housing inventory in a year-over-year comparison; however it
was an increase of 1.41% in a month-over-month comparison. What does this mean?
Simply that while we have seen significant rebounding in the housing industry
over the last year, we are now seeing that slow down as it finds balance. Out of
all of the variables that make up housing market pricing, it is most likely the
dramatic increase in mortgage
rates that have led to the turnaround in inventory. While it is easy to
take this as a negative, one must remember that lack of inventory poses its own
problems, and that the best thing for sustainable business is balance.
Here were some of the other national highlights:
- Dramatic national year-over-year inventory declines have evaporated. Nationally inventories in July are only 5.24 percent below the level of a year ago compared to being down 16.47 percent year-over-year in January.
- Inventory declines decrease in local markets. In July 2013, the number of markets with decreases in year-over-year inventory declined from 125 markets in June to 118 markets in July. This suggests that this fall inventories in some markets may return to levels of a year ago and may continue to slow price increases in some markets.
- Markets are still moving fast. All but five markets are continuing to experience year-over-year declines in age of inventory and on a month-over-month basis. On a national level, housing inventory is approximately 17 percent below last year, but the national age of inventory increased 6.25 percent month-over-month.
- Price declines decrease in local markets. Median listing prices are now negative year-over-year in only 31 markets, which is down from 36 in June.
Remember that if you need any further questions answered, you can always contact me at 314-744-7806 or by contacting me at the link below...
Comments
Post a Comment