What you need to know about home prices…
The real estate market is ever changing, and as we’re approaching the halfway mark of 2024 many home buyers and sellers are questioning the direction of the market. In many cities there is a shortage of houses that are available which leads to buyer bidding wars. The difference in the amount of houses and how many people there are looking for a home isn’t balanced, which has increased prices. If you’re looking to buy a home this year its important to pay attention to market trends, mortgage prices, and have a financial strategy.
According to data from Frannie Mae, about 1 in 4 people still think home prices are going to come down. If you fear home prices are going to continue to rise, don’t be. Housing market conditions especially negative ones, make headlines, and therefore are pushed out a lot more. But those headlines are not giving the big picture, there is a lot more to it than these simple posts and blogs are making it out to be.
Case-Schiller releases monthly reports, based on the percent of monthly home price changes. As you can see in this picture there are not many negatives, however when news channels report aboutit, they make it seem like it is more negative than positive.
It is normal for the housing market to fluctuate, and for home price growth to slow in the winter and pick back up in the summer. Most people are not looking to move over the holidays that occur throughout the winter and fall months and are more likely to move in the spring and summer.
According to Frannie Mae, in April 2024, 67% of consumers indicated that it’s a good time to sell a home while 20% said it’s a good time to buy a home. Since the end of 2023 mortgage rates have been steadily increasing. There is a possibility of the Home Purchase Sentiment Index (HSPI) plateauing as consumers are adjusting to higher interest rates and homes prices. Some consumers are waiting to see how the housing market is looking to change before making any home buying decisions.
Currently home prices are higher and mortgage rates are possibly looking to coming down, however they are still high. The market is favored more towards the seller right now, due to the low inventory for houses and the demand for homes. Homebuyers may see some ease in the market in later months of this year, so its important to pay attention to the market as it changes.
