Summer Heat — Existing Home Sales COOL an OPPORTUNITY?

By
Real Estate Agent with Fairfax Realty

Summer is Hot Existing Home Sales Cool Why Dave Martin Realtor Northern Virginia Buyer Broker listing specialist

ORIGINALLY POSTED AT: https://www.comehomevirginia.com/summer-heat-but-existing-home-sales-cool-an-opportunity

Summertime temperatures have been very hot this year, but for 3+ months existing home sales have cooled, why?

First a local view of Northern Virginia most likely causes for slowing home sales.

  1. While locally in many neighborhoods in the region the number of homes for sale has increased during this year the quality of these homes and often the quality of the marketing of them has declined.
  2. On the part of lower quality of properties this could be caused by home owners believing that the shortage of available homes means that they can take short cuts in Preparing their Home for Sale.
  3. As for the lack of marketing, often times inexperienced or "lazy" agents fall into the same trap of believing that the shortage of inventory is an inventation to cut corners on marketing. I have seen an increase of listings with such huge errors as these:
    • MLS: Depending exclusively (or mostly) on the MLS to find the buyer.
    • Emotion: Lack of compelling description and details in the Listing Information.
    • Photos: Too few and or very poor quality.
    • This type of marketing is often referred to as a "Post and Pray" or "List and Pray" the agents that attempt to sell homes with this approach are both a Joke and an Embarrassment to serious professional Listing Agents in the industry. The specifics of this type of marketing are the 3 P's.
      1. Put it in the MLS.
      2. Post a sign in the yard.
      3. Pray.
  4. Increasing Interest Rates mortgage intererest rates have steadily climbed throughout 2018 with some brief pauses but the overall direction remains upward. This has caused some home buyers to be "Priced Out" of the market. The forecast is that they will continue to do so through 2019 and possibly beyond. While forecasting the future is never going to work 100% of the time the best indication that this is likely true is the relative health of the National Economy and announcements by the FED of its intent to continue to slowly increase the Prime Lending Rate. The best indicator however is to watch the Yield on the 10 year Treasury Bond as these are the financial instrument most closely tied to 30 mortgage rates.

 

Find the Value of your home in Virginia accurate market value Dave Martin Listing Marketing specialist

 

 

NATIONALLY


Across the U.S. the supply of available homes for sale continues to be extremely low. This has edged home prices higher. During the past year mortgage rates have also increased, and though they are still at historic lows, the combination of these two factors may have put home ownership out of reach for many potential would-be home buyers.

By the end of June 2018, U.S. home sales had fallen for a third straight month. In June a persistent shortage of properties on the market pushed up house prices to a record high, likely sidelining some potential buyers.

  • According to the National Association of Realtors’ latest Existing Home Sales Report, sales in June were down 2.2% from last year.
  • Inventory of homes for sale showed a modest improvement of 0.5% over last year’s figures, but still remains under the 6-month supply needed for a normal market.
  • NAR’s Chief Economist Lawrence Yun had this to say: “There continues to be a mismatch since the spring between the growing level of homebuyer demand in most of the country in relation to the actual pace of home sales, which are declining. The root cause is without a doubt the severe housing shortage that is not releasing its grip on the nation’s housing market.”

 

Month by Month National Existing Home Sales ChartHot Summer Home Sales of existing homes cool Dave Martin Realtor Northern Virginia Buyer Agent Listing Specialist Market Value slowed existing home sales Opportunity for sellers buyers

National Existing Home Sales Chart Month 2017 2018 Dave Martin Realtor Northern Virginia Real Estate

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 Additional Real Estate Posts

  1. Fake New — Home Buying Truths
  2. Home Buying — Preparation for Success
  3. Home Buyers - Costly Mistakes To Avoid In A Seller's Market
  4. Move Up To A Luxury Home? — Now Is A Great Time!
  5. Sellers These Are The Features Home Buyers Want Most 

 

This information about "Existing Home Sales Slide 3rd Month In A Row, Opportunity?" is brought to you courtesy of  Dave Martin Realty Group, your Northern Virginia residential real estate experts. If you're considering selling or buying a house in the Northern Virginia metro area, we'd love an opportunity to earn your business, provide you an outstanding experience, and demonstrate to you that:

"Help From The Best Agent Makes All The Difference."

 

Comments (4)

Lynnea Miller
Bend Premier Real Estate - Bend, OR
Premier Real Estate Service in Central Oregon

Hi Dave Martin (703) 585-4687 .  We are seeing a softening in our market as well.  One thing I believe is impacting us is prices.  Since coming out of the recession, our home prices have gone up by roughly 10% per year.  This has definately impacted what buyers can afford and I believe we have priced a lot of people out of the market.

Aug 26, 2018 02:00 PM
Anna Banana Kruchten CRS, CRB, Phoenix Broker
HomeSmart Real Estate BR030809000 - Phoenix, AZ
602-380-4886

Hi Dave I am seeing a bit of a slow down in some of our local markets. The luxury market has cooled down but the first time and buy up buyers is still going strong here.

Aug 26, 2018 02:27 PM
Carol Williams
Although I'm retired, I love sharing my knowledge and learning from other real estate industry professionals. - Wenatchee, WA
Retired Agent / Broker / Property Manager

Hi Dave,
No doubt a combination of things are contributing to the slowdown in some areas. 

Aug 26, 2018 04:58 PM
Dave Martin (703) 585-4687
Fairfax Realty - Fairfax, VA
Making Realty Dreams a Reality #WeWillGetYouHome

Strong compared with normal is still present in Northern Virginia Homes as well Anna Banana Kruchten CRB, CRS 602-380-4886 but slowed comparitively its a National number so it is pretty wide spread. Hardly constitues a Buyers Market though given only about 4 months of inventory but the sheer number of sales compared with March have slowed a bit and seeing time on market moving up a little here as well.

Aug 27, 2018 05:28 AM