Positive Numbers To Wrap Up 2018
This year started strong for real estate. Home inventory in the starter and move-up categories dwindled to almost nothing, mortgage rates were projected to rise. The lack of homes on the market caused a fast moving market but fewer sales. Makes sense right? If you have 300 buyers and 10 homes for sale how many homes will sell? IT’s capped at 10 houses and the other 290 buyers remain ready to buy….
The news media took this information and made a negative spin out of it….making it sound like the market was slow…when in fact it was not a complete picture….
As the numbers rolled in for the last 2 months of the year…things seemed to change. On Wednesday, the National Association of Realtors’ (NAR) revealed in their Existing Homes Sales Report that home sales had INCREASED for the second consecutive month. The next day, NAR’s economic research team announced that the percentage of first-time buyers in the market was higher than last month and even higher than a year ago.
So where are we now?
On the heels of NAR’s revelations, Zillow released their November Real Estate Market Report that explained:
“After nearly four years of annual declines in inventory, the number of homes for sale has now increased year-over-year for three straight months…”
Ending 2018, we now know two things:
- Listing inventory increased over the last three months
- Home sales increased over the last two months
Lack of inventory was the major challenge all along.
But, what about those pesky interest rates?
Last Thursday (the day after all of the above news), Freddie Mac announced that mortgage rates did not increase but instead decreased…again. From their release:
“The response to the recent decline in mortgage rates is already being felt in the housing market. After declining for six consecutive months, existing home sales finally rose in October and November and are essentially at the same level as during the summer months.
This modest rebound in sales indicates that homebuyers are very sensitive to mortgage rate changes – and given the further drop in rates we’ve seen this month, we expect to see a modest rebound in home sales as well.”
We are headed in 2019 with strong indicators of a good market.
Let’s get together and discuss the best strategy for your next move:
Source: Michigan Real Estate Updates