{"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
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> 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>Let\u2019s take a deeper look:<\/strong><\/h4>
Interest Rates<\/strong><\/h4>