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Is Residential Real Estate Still Going Strong?

By
Real Estate Broker/Owner with 1 Month Realty 49855-090

RE Market

New reports about the housing market show that residential real estate is still going strong despite the ongoing affordability challenges.

Last week, the National Association of Realtors released their Pending Home Sales data for June 2023. The report below shows the number of pending home sales – which equates to the actual signed contracts on existing single-family homes and condos – rose 0.3% from May to June.

Since February, this is the first time that pending home sales have increased. This is very significant because it shows that even though mortgage rates have  elevated, home buyers are starting to accept the higher borrowing costs and are moving forward with their homebuying plans.

There is still more demand for homes than there are homes available for sale, and we've been experiencing the price effects of the low housing supply (low inventory) for months now. Prices have been steadily rising since February, and in many areas have already eclipsed (overshadowed) the prices we saw at the peak of the market in June 2022.

Here are current 2023 monthly home price changes from top industry reports

2023 Monthly Home Prices

Supply and demand economics are working to keep home prices steady, and the recent pending home sales numbers show there are still plenty of people out there who want to buy homes even in the face of the higher rates.

If you want to buy but are still worried about a housing market crash, this information should offer some relief.

Today’s rates, for a single-family home purchase with excellent credit and 20% down

30 Year Fixed: 6.750%/6.926%APR

15 Year Fixed: 5.990%/6.248% APR

Jumbo 10/1 ARM: 6.750%/7.368% APR

Jumbo 7/1 ARM: 6.500%/7.441%APR

I recently received the following article about consumer debt from one of my local lenders. He said, “I can tell you that over this past year, I have seen many applicants with a lot of credit card, personal and student loan debt.  

Consumer Debt Article 

In part, credit card debt has to do with the economy as some people are buying groceries and other items on credit, also part personal choice of wanting something now without saving for it and students may not be aware of the consequences of debt beyond graduation.  All of this affects their home buying power as well.   

Hope this information was helpful.  Please don't hesitate to reach out to me if you have any questions or are interested in buying or selling real estate in SE Wisconsin

Bob "RealMan" Timm
Ward County Notary Services - Minot, ND
Owner of Ward Co Notary Services retired RE Broker

I have been keeping up (thanks to Active Rain) Diana Dahlberg BUT I am still surprised at the numbers. Thanks for the post.

Aug 09, 2023 01:25 PM
Diana Dahlberg

Bob "RealMan" Timm ActiveRain is the Best of the Best for keeping up with what's going on all around us!  Thanks for your comments!

Aug 09, 2023 01:57 PM
Joan Cox
House to Home, Inc. - Denver Real Estate - 720-231-6373 - Denver, CO
Denver Real Estate - Selling One Home at a Time

Diana, we are seeing increases, even though they are ever so slightly, but there are pockets that lost some value.

Aug 09, 2023 01:43 PM
Diana Dahlberg

Real Estate is local ... and each of us are seeing the ups and downs and all arounds!  I can go from one municipality to another and see differences!  Thanks for your comments Joan Cox 

Aug 09, 2023 01:58 PM
Endre Barath, Jr.
Berkshire Hathaway HomeServices California Properties - Beverly Hills, CA
Realtor - Los Angeles Home Sales 310.486.1002

My market consists of three different layers the Ultra Luxury Market, the Luxury Market and the rest of the Market so it depends on which one is inquiring about and what price points, Endre

Aug 09, 2023 10:09 PM
Diana Dahlberg

Well I have to agree I am seeing some of the same here, however our market is more in the middle of everything and thus we are still seeing alot of competitive bidding.  Not as much in the luxury market.  I so appreciate your comments Endre Barath, Jr. 

Aug 10, 2023 07:24 AM
Nina Hollander, Broker
Coldwell Banker Realty - Charlotte, NC
Your Greater Charlotte Realtor

Good morning, Diana... all I know is that here in the Charlotte region real estate is going strong.

Aug 10, 2023 05:32 AM
Diana Dahlberg

Proof that real estate is local!  Wow!  I am so happy for you Nina Hollander, Broker ... thank you for sharing 😊

Aug 10, 2023 07:12 AM
Nina Hollander, Broker

Diana Dahlberg in the Charlotte area, I always say real estate is not just local it's downright hyperlocal.

Aug 10, 2023 08:06 AM