{"id":1843,"date":"2018-11-07T15:49:54","date_gmt":"2018-11-07T20:49:54","guid":{"rendered":"http:\/\/buyershomestore.com\/?p=1843"},"modified":"2018-11-07T16:16:23","modified_gmt":"2018-11-07T21:16:23","slug":"housing-supply-increased-sales-slowed-down","status":"publish","type":"post","link":"https:\/\/buyershomestore.com\/housing-supply-increased-sales-slowed-down\/","title":{"rendered":"Why Has Housing Supply Increased as Sales Have Slowed Down?"},"content":{"rendered":"\t\t
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According to the latest\u00a0Existing Home Sales Report<\/a><\/em>\u00a0from the\u00a0National Association of Realtors\u00a0<\/em>(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\u2019s numbers.<\/p>

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

NAR\u2019s\u00a0Chief Economist<\/em>\u00a0Lawrence Yun shed some light on what could be contributing to this shift,<\/p>

\u201cThis is the lowest existing home sales level since November 2015. A decade\u2019s 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.\u201d<\/em><\/p><\/blockquote>

Let\u2019s take a deeper look:<\/strong><\/h4>

Interest Rates<\/strong><\/h4>

Since January, 30-year fixed mortgage\u00a0interest rates<\/a>\u00a0have increased nearly a full percentage point (from 3.95% to 4.9%).\u00a0Fannie Mae, Freddie Mac,\u00a0<\/em>the\u00a0National Association of Realtors,<\/em>\u00a0and the\u00a0Mortgage Bankers Association\u00a0<\/em>are all in agreement that rates will continue to increase to about 5.2% over the next 12 months.<\/p>

\u201cThe rise in [mortgage] rates paired with this very strong price appreciation absolutely is slowing housing,\u201d<\/em>\u00a0said<\/a>\u00a0Fannie Mae\u2019s Chief Economist<\/em>\u00a0Doug Duncan.<\/p><\/blockquote>

Even though rates are higher than they\u2019ve been in a decade, they still remain\u00a0below the average<\/a>\u00a0for the 1970s, 80s, 90s, and 2000s!<\/p>

Mismatch of Inventory<\/strong><\/h4>

Elizabeth Mendenhall,\u00a0President\u00a0<\/em>of NAR, said it best,\u00a0\u201cDespite 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.\u201d<\/em><\/p>

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%.<\/p>

According to the\u00a0Institute of Luxury Home Market\u2019s Luxury Market Report<\/em>, the $1M-and-up price range is now experiencing a buyer\u2019s market. This means that supply (inventory) has finally caught up with demand and buyers are in the driver\u2019s 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.<\/p>

Natural Disasters<\/strong><\/h4>

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.<\/p>

Bottom Line<\/strong><\/h3>

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\u2019s get together so we can help you make the best decision for you and your family.<\/p>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<\/div>\n\t\t","protected":false},"excerpt":{"rendered":"

According to the latest\u00a0Existing Home Sales Report\u00a0from the\u00a0National Association of Realtors\u00a0(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\u2019s numbers. For over three years leading up to this point, the exact opposite…<\/p>\n","protected":false},"author":4,"featured_media":1846,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_kad_post_transparent":"","_kad_post_title":"","_kad_post_layout":"","_kad_post_sidebar_id":"","_kad_post_content_style":"","_kad_post_vertical_padding":"","_kad_post_feature":"","_kad_post_feature_position":"","_kad_post_header":false,"_kad_post_footer":false,"footnotes":""},"categories":[146,147,156,145],"tags":[],"_links":{"self":[{"href":"https:\/\/buyershomestore.com\/wp-json\/wp\/v2\/posts\/1843"}],"collection":[{"href":"https:\/\/buyershomestore.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/buyershomestore.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/buyershomestore.com\/wp-json\/wp\/v2\/users\/4"}],"replies":[{"embeddable":true,"href":"https:\/\/buyershomestore.com\/wp-json\/wp\/v2\/comments?post=1843"}],"version-history":[{"count":7,"href":"https:\/\/buyershomestore.com\/wp-json\/wp\/v2\/posts\/1843\/revisions"}],"predecessor-version":[{"id":1857,"href":"https:\/\/buyershomestore.com\/wp-json\/wp\/v2\/posts\/1843\/revisions\/1857"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/buyershomestore.com\/wp-json\/wp\/v2\/media\/1846"}],"wp:attachment":[{"href":"https:\/\/buyershomestore.com\/wp-json\/wp\/v2\/media?parent=1843"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/buyershomestore.com\/wp-json\/wp\/v2\/categories?post=1843"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/buyershomestore.com\/wp-json\/wp\/v2\/tags?post=1843"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}