The real estate tide may be making a more significant turn, according to the latest insight from industry leaders. According to Fortune magazine’s Chris Morris, what was once a seller’s market, complete with frenzied offers and bidding wars, is beginning to smooth out, becoming more balanced between supply and demand.
The National Association of Realtors (NAR) says existing home sales in January dropped to their lowest level in three years, with existing home sales down 1.2% to an adjusted annual rate of 4.94 million units last month. That’s below analyst expectations and an 8.5% drop from a year ago. According to their stats, only the Northeast saw a rise in sales activity. This continued drop in supply is partially to blame for the rising home prices. However, even with home values increasing, they’re not increasing at such an alarming rate, which is a promising sign for future buyers.
While home prices are still experiencing gains, they’re nowhere close to the rise we’ve saw in recent years. The median price of an existing house climbed 2.8% in January to $247,500, the smallest increase since February 2012. According to Fortune, prices have increased for 83 consecutive months, but experts are now saying that trend could be ending. Could this mean future buyers now have a better chance to participate in the American Dream?
“The number of homes on the market is starting to rise, too, meaning buyers have a wider selection to choose from,” says Morris. “In January, there were 1.59 million previously owned homes on the market, compared to 1.53 million in December. The average home stayed on the market 49 days, a week longer than January 2018.”
Morris goes on to cite the NAR’s chief economist, Lawrence Yun: “Moderating home prices combined with gains in household income will boost housing affordability, bringing more buyers to the market in the coming months.”
If you’ve got a house on the market, or are about to list your home for sale, remember–patience is a virtue, along with pricing it to sell. For buyers, more inventory hitting the market means you should have better options to choose from and perhaps more negotiating power.
If you’re looking for a home in the state of Texas, or if you’re considering refinancing your current mortgage, be sure to connect with our team of home financing experts. We’re proud to offer a range of competitively priced mortgage products to meet the needs of today’s home buyers.