Why Has Housing Supply Increased as Sales Have Slowed Down? #TimeToBuy

By
Real Estate Agent with Allison James Elite CA. BRE 01501699
https://activerain.com/droplet/5g4c

#5StarREALTOR®

Your home is probably the biggest asset you own. This is why you should hire a professional to guide you through all your real estate transactions. My goal is to help 24 to 28 families each year either buy or sell a home. I am NOT interested in Selling 100 or 200 homes a year because I would not be able to give each family the time, attention and energy they deserve.....

Why Has Housing Supply Increased as Sales Have Slowed Down? | MyKCM

According to the latest Existing Home Sales Report from the National Association of Realtors (NAR), the inventory of homes for sale this year compared to last year has increased for the last four months, all while sales of existing homes have slowed compared to last year’s numbers.

For over three years leading up to this point, the exact opposite was true; Inventory dropped as sales soared.

NAR’s Chief Economist Lawrence Yun shed some light on what could be contributing to this shift,

“This is the lowest existing home sales level since November 2015. A decade’s high mortgage rates are preventing consumers from making quick decisions on home purchases. All the while, affordable home listings remain low, continuing to spur underperforming sales activity across the country.”

Let’s take a deeper look:

Interest Rates

Since January, 30-year fixed mortgage interest rates have increased nearly a full percentage point (from 3.95% to 4.9%). Fannie Mae, Freddie Mac, the National Association of Realtors, and the Mortgage Bankers Association are all in agreement that rates will continue to increase to about 5.2% over the next 12 months.

“The rise in [mortgage] rates paired with this very strong price appreciation absolutely is slowing housing,” saidFannie Mae’s Chief Economist Doug Duncan.

Even though rates are higher than they’ve been in a decade, they still remain below the average for the 1970s, 80s, 90s, and 2000s!

Mismatch of Inventory

Elizabeth Mendenhall, President of NAR, said it best, “Despite small month over month increases, the share of first-time buyers in the market continues to underwhelm because there are simply not enough listings in their price range.”

Prices of starter and trade-up homes have appreciated faster than their higher-priced counterparts. Over the last 5 years, the lowest-priced homes have appreciated by 47% while the highest-priced homes have appreciated by only 24%.

According to the Institute of Luxury Home Market’s Luxury Market Report, the $1M-and-up price range is now experiencing a buyer’s market. This means that supply (inventory) has finally caught up with demand and buyers are in the driver’s seat when it comes to negotiations. Additionally, many listings in this price range have experienced price cuts in order to entice buyers to put in offers.

Natural Disasters

Although not fully to blame for the national shortage in sales and inventory, natural disasters like Hurricane Florence, Hurricane Michael, and the wildfires on the West Coast have certainly had an impact.

Bottom Line

Additional inventory coming to market could help normalize the housing market and allow incomes to catch up to home prices. For more information about sales and inventory in our area, let’s get together so we can help you make the best decision for you and your family.

About Me

My photo
 

Chris B. Johnson is a REALTOR® who Specializes in Short Sale and REO Transactions. Chris has been Certified as a California Association of Realtors HAFA Specialist, a National Association of Realtors Short Sale and Foreclosure Resource, Chris B Johnson Realtor is a Certified Distressed Property Expert, Certified Short Sale Negotiator, Certified Default Advocate and Certified Pre-Foreclosure Specialist. With a full time staff dedicated to short sale negotiations and transactions, we have been successful with (almost) every short sale to date.  LinkedIn Pro    UpNest    What's Your Home Worth?

 

 

The information contained, and the opinions expressed, in this article are not intended to be construed as investment advice. Keeping Current Matters, Inc. does not guarantee or warrant the accuracy or completeness of the information or opinions contained herein. Nothing herein should be construed as investment advice. You should always conduct your own research and due diligence and obtain professional advice before making any investment decision. Keeping Current Matters, Inc. will not be liable for any loss or damage caused by your reliance on the information or opinions contained herein.

RateMyAgent VC 5 Star Rated Realtor ChrisBJohnsonRealtor on YouTube.

RateMyAgent :

Sell Your Home For More and Pay Less Using A 5 Star Rated Realtor https://youtu.be/CRCXLh4EycU

Sell Your Home For More For More and Pay Less Using A 5 Star Rated REALTOR®.

Posted by

close

This entry hasn't been re-blogged:

Re-Blogged By Re-Blogged At
Topic:
Home Buying
Location:
California Ventura County
Tags:
ar best real estate agent
top three realtors in ventura county
number 1 realtor in moorpark camarillo
your best choice for a realtor in ventura los angeles county ca
luxury home auction specialist

Post a Comment
Spam prevention
Spam prevention
Show All Comments
Rainmaker
407,067
Chris B Johnson
Allison James Elite - Moorpark, CA
5 Star Rated REALTOR® Quality, Not Quantity

5 Star Rated REALTOR #ChrisBJohnsonREALTOR

https://youtu.be/p4-VfR1DJNA

Sell Your Home For More and Pay Less Using A 5 Star Rated Realtor

https://youtu.be/CRCXLh4EycU

https://biteable.com/watch/sell-for-more-pay-less-chrisbjohnsonrealtor-1959786/afffdc699004f8b15891489c4de17b4cbd4e3a75

https://biteable.com/watch/xome-super-seller-1954842

https://www.ratemyagent.com/real-estate-agent/chris-b-johnson-xu316/reviews

http://www.VCNeighborhoodValues.com

http://www.ChrisBJohnsonRealtor.AllisonJamesInc.com/blog.php

http://www.ChrisBJohnsonRealtor.AllisonJamesInc.com/

http://my.flexmls.com/ChrisBJohnsonRealtor               IDX

https://drive.google.com/file/d/0Bzia-m_p1JFMMVMzSGZFdmNYV28/view?usp=sharing

http://www.simplifyingthemarket.com/?a=97822-26df5ea08f8689012df0225866ae0bf1

https://www.linkedin.com/today/author/chrisbjohnson

https://www.linkedin.com/in/chrisbjohnson/detail/recent-activity/posts/

https://www.linkedin.com/pro/chrisbjohnson

http://www.linkedin.com/in/chrisbjohnson

https://activerain.com/profile/chrisbjohnson

https://activerain.com/blogs/chrisbjohnson

https://www.youtube.com/c/ChrisBJohnsonRealtor

http://chrisbjohnsonrealtorluxuryhomes.blogspot.com/

http://www.google.com/+ChrisBJohnsonRealtor

http://www.google.com/+ChrisBJohnsonRealtorMoorpark

http://www.google.com/+ChrisbjohnsonrealtorMoorparkShortSaleRealtor

https://moorpark-short-sale-specialist.business.site

https://chris-b-johnson-realtor.business.site/

http://www.facebook.com/ChrisBJohnsonRealtor

http://www.ChrisBJohnsonRealtor.com

http://www.twitter.com/CBJRealtor

https://www.pinterest.com/chrisbjohnsonre/

https://www.instagram.com/chrisbjohnsonrealtor/

http://moorparkshortsalespecialist.com/

http://moorparkshortsalespecialist.com/short-sale-decision-maker/

http://venturacountyshortsalerealtor.wordpress.com/
http://venturacountyshortsalespecialist.com

http://venturacountyshortsalespecialist.theshortsaleguide.com

https://www.facebook.com/VenturaCountyEstateShortSaleBankOwnedRealtor/

http://www.facebook.com/MoorparkShortSaleSpecialist

http://www.facebook.com/StopForeclosureVenturaCounty

Nov 07, 2018 10:13 AM #1
Post a Comment
Spam prevention
Show All Comments

What's the reason you're reporting this blog entry?

Are you sure you want to report this blog entry as spam?

Rainmaker
407,067

Chris B Johnson

5 Star Rated REALTOR® Quality, Not Quantity
Is it Too Late to Short Sell My Home??
*
*
*
*
Spam prevention

Additional Information