Recent Housing Trends You Should Know About

Homebuyers have been seeing signs of improvement in the housing market. Across the U.S., inventory has been increasing, prices have been coming down, and home sales have been rising.

More Houses on the Market

Because of high interest rates, many homeowners with low fixed-rate mortgages decided to stay put. They reasoned that if they sold their house and bought another one, they would have to take out a loan with a higher interest rate. That led to low inventory and drove up home prices.

That trend has been reversing. According to Homes.com, the number of active listings nationwide in April was 6.3% higher than it was at the same time last year. More inventory puts buyers in a better position.

Sellers Adjusting Their Expectations

Realtor.com noted that home prices nationwide have been going down for the past seven months. In May, the median listing price saw its steepest annual drop since 2017. In addition, the price per square foot has been declining in most major housing markets.

Sellers are moving away from the practice of setting high prices, then lowering them. Instead, they’re setting prices that are reasonable in their market.

According to RedFin, significant numbers of sellers have been de-listing and then re-listing their homes. Those homeowners couldn’t find buyers willing to pay the prices they were asking, so they decided to take their houses off the market temporarily, lower their asking prices, and try again.

Builders Offering Low Interest Rates

High mortgage rates are one of the main factors deterring potential buyers. Homebuilders have been using low interest rates to encourage people to buy new construction homes.

When a builder offers a buydown, it pays a fee to a lending partner to lower the buyer’s interest rate. A permanent buydown lasts for the entire mortgage term, while a temporary buydown only lasts for a few years. The interest rate rises each year, which can cause monthly mortgage payments to jump.

More Homes Sold

Many people who wanted to buy a house decided to wait due to high interest rates, international events, and concerns about the economy. As conditions have shifted, buyers have been coming off the sidelines.

According to Homes.com, home sales have risen slightly nationwide. The number of houses under contract has been rising steadily.

What Does All of This Mean for You?

If you’ve been thinking about buying a house but didn’t think you could afford it, now can be a good time to start looking. With more houses for sale and more realistic prices, you’ll have a better chance of finding a home that fits your budget.

It’s important to note that these are nationwide trends. When it comes to real estate, conditions can vary widely from place to place. A qualified real estate professional can tell you about trends in your area and help you find a house in your price range.

Educate Yourself

The homebuying process can feel confusing and overwhelming. A single mistake can cost you tens of thousands of dollars.

In Financial Freedom Voyage’s First-Time Homebuyer Masterclass, you can learn about mortgages, homeowners insurance, home inspections, and a lot more. When you’ve completed the course, you’ll be prepared to find a house that’s right for you and avoid common slip-ups. Enroll today.

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