You might be wondering how the latest housing market updates will impact your winter home-buying plans. Here are the top three questions that might be on your mind.
1. What’s Happening with Home Prices?
If you’re keeping up with the news, you might be a bit confused about what’s happening with home prices. Well, know this: despite what you may have heard, they’re not going down. In fact, it’s just the opposite. National data from several sources says home prices have been going up consistently since early 2023. But it’s important to know prices differ depending on where you live. Overall, the limited supply of homes for sale and ongoing buyer demand are going to keep upward pressure on prices. As Freddie Mac states: “Overall, it appears the reduction in supply has outweighed the decrease in demand, thus house prices have started to increase . . .” So, with prices going up again, if you find a home that suits your needs, it’s probably not the best idea to wait.
2. What’s the Deal with Mortgage Rates?
Since October of 2022, rates have been between 6% and 8%. The rates we experienced a few years ago, like 3%, are now a thing of the past. But beyond that, no one knows for sure where mortgage rates will go from here. Even the experts can’t say with certainty what’s going to happen next. The best advice for your move is this: don’t try to control what you can’t control. This includes trying to time the market or guess what the future holds for mortgage rates. As CBS News states: “If you’re in the market for a new home, experts typically recommend focusing your search on the right home purchase — not the interest rate environment.”
3. What Does Low Housing Inventory Mean for My Move?
Housing inventory is measured by the number of available homes on the market. It’s also measured by months’ supply, meaning the number of months it would take to sell all those available homes based on current demand. Bankrate says this about inventory: “Traditional wisdom states that the real estate market needs 5 to 6 months of housing supply to be balanced, or not leaning toward either a buyer’s market or seller’s market.” Home sales data from the National Association of Realtors (NAR) shows inventory at a 3.6-month supply as of October. With inventory this low, it’s important to consider all housing types as you look for affordable options. Working with a professional can help you in your search.
Bottom Line
Let’s get in touch, so you have an expert to answer all your questions about the housing market. We’ll discuss your goals and what’s happening in our local area, so you’ll have the information you need to make a smart and confident decision.
