The National Association of Realtors (NAR), in its ongoing analysis of home sales statistics, believes that prices will continue to rise during the third quarter, but that uncertainty over elections could be a factor during the second half of the year.
However, NAR’s report noted that in July, a typically lackluster month, home prices rose by about nine percent, and days on market decreased significantly, perhaps signaling a strong start for the third quarter.
National statistics don’t necessarily tell the whole story, however. In addition, what will happen in the fourth quarter is, at this point, a bit more difficult to predict. Assessments about how home prices and real estate will end the year differ from one part of the country to another.
Looking Ahead
In 381 of 500 markets that were tracked, homes stayed on the market for fewer days in July 2018 than the median time on market the previous year, even in the highest price markets, typically a sign that demand is still outpacing supply.
Dallas-Fort Worth area mortgage lenders report a noticeable slowdown over the past several months, and the inventory of homes on the market has grown. But another Texas town, Midland, ranked as the nation’s hottest market for the second month in a row in July, based on continued high demand and the speed at which homes have been selling.
The list of fast-moving markets, compiled by by Realtor.com, also places Columbus, Ohio, Boston and Fort Wayne, Ind., at the top; Dallas-Fort Worth, interestingly, ranked 17th of 20 hot markets in the Realtor.com survey.
Potential Benefits
Some housing analysts note that even slight slowdowns in select markets, coupled with rising mortgage rates, may signal a wider downturn in sales nationally, adding that it is not entirely unexpected. Many real estate and mortgage professionals, however, view any potential “adjustment” as a good thing, with the explanation that the double-digit appreciation is unsustainable over the long term.
Prevailing wisdom is to take a wait and see approach leading up to midterm elections. Pollsters and pundits have widely variant opinions and, to date, trends are not sufficiently clear. In addition, the housing industry is seemingly healthy at this point and, barring unexpected major interest rate increases, demand for housing is likely to remain strong.
As one researcher at Texas A&M University explains, even a modest slowdown will likely only bring the real estate market down to 2016 levels and, in retrospect, that was a very good year! Other analysts are more positive, saying that an expected slowdown is positive and will prevent “a new bubble.”
As always, contact your trusted real estate and mortgage professionals to discuss the current situation in your local market.
Securing the best conventional mortgage rate possible can pose a challenge for even veteran property buyers.
Last week’s economic news included readings on construction spending, along with public and private-sector jobs growth. The national unemployment rate, weekly reports on mortgage rates and new jobless claims were also released.
Burdensome student loan debt and a penchant for purchasing new electronics by 20- and 30-somethings can make saving up for a down payment on a home seem impossible. But Millennials and other potential home buyers may be surprised to discover that previous generations had money-saving challenges of their own.
Downsizing at any stage of life can offer multiple benefits. Less square footage may come with a smaller price tag and usually means less space to clean. However, when downsizing a home, there’s usually the question of what to do with everything. That’s when creative storage ideas become essential.