According to recent information from Realtor.com, the nation’s housing inventory fell more than 5 percent last month. In a year-over-year comparison, July’s inventory was 5.24 percent lower than a year ago; however, inventory was up 1.41 percent when compared to June’s figures.
So just what does this mean for home buyers and home sellers? The year-over-year decrease may point to the strength of buyer demand, which has increased dramatically since the 2007-2008 years. When demand is high, the supply will fall unless the market is replenished frequently. Also, many Americans may still be reluctant to sell their homes for a variety of reasons – being underwater in their loan, not being financially ready to move up to a bigger house, etc. On the other hand, the month-over-month increase could be an indication that homeowners are beginning to feel more confident about listing their homes on the market.
Here’s a look at a few more highlights from Realtor.com’s National Housing Trend Report:
- Yearly declines in inventory have been less dramatic.
National inventories were down 16.47 percent at the beginning of 2013. Now, they are only 5.24 percent lower.
- Fewer local markets experiencing inventory declines.
In June, there were 125 markets with declining inventory. In July, there were only 118.
- Fewer price declines.
Median list prices declined in 31 markets in July, as opposed to 36 markets in June.
Mortgage Rates Forecast
Currently Trending: Higher
If you’ve been hesitant about locking in a mortgage, hoping that the rates will go back down, don’t wait too long or you could miss out. Information from various industry and market trackers indicates that rates are moving in the upward direction. Be that as it may, today’s rates are still quite low by historical standards, so if you lock in soon, you could still come out ahead.
Key Economic Events
Week of Aug. 26
- Wednesday, August 28, 10 am: National Association of Realtors releases pending home sales numbers.
- Thursday, August 29, 8:30 am: Commerce Department releases its second revision of the country’s estimated second-quarter growth rate