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Existing-Home Sales Ease in January, but Median Prices Rise
Existing-home sales have been declining for a year, with January seeing a 0.7% drop compared to December. Despite this, median home prices are still on the rise. Here’s a look at the key indicators and regional snapshots from NAR’s latest housing report, and what it means for sellers.
The National Association of REALTORS® reports that total existing-home sales—completed transactions that include single-family homes, townhomes, condos and co-ops—decreased by 0.7% in January compared to December 2022. Home sales have dropped by almost 37% compared to the same period last year. However, the median existing-home sales price nationwide rose by 1.3% compared to a year ago, reaching $359,000.
Economists are hopeful for a turnaround in sales activity for the housing market heading into spring, as mortgage rates begin to stabilize. Despite rising prices, the supply of homes for sale continues to be tight in most markets across the country. Unsold inventory remains at a brisk, 2.9-month supply at the current sales pace.
As competition lessens, first-time home buyers are re-emerging, accounting for 31% of sales in January, up from 27% a year earlier. All-cash transactions comprised 29% of sales in January, up from 27% in January 2022. Distressed sales accounted for 1% of sales in January, matching levels from a year earlier.
While the median prices rose in three out of the four major regions of the U.S., only the West saw a decline last month. This should be taken into account by sellers who are considering putting their homes on the market. With inventory remaining low but buyers having better negotiating power, now is a good time to consider contacting a real estate agent to explore your options. Contact one of our reputable REALTORS® who can help you make the most of the current market conditions.
Navigating Home Prices in the Spring Market: What You Need to Know
With the spring market approaching, many people are keeping a close eye on the latest changes in home prices. However, navigating the confusing and often misleading data can be a challenge. To help you make informed decisions about your real estate goals, here’s what you need to know about today’s home prices.
According to Nataliya Polkovnichenko, Ph.D., Supervisory Economist at the Federal Housing Finance Agency (FHFA), U.S. house prices have remained largely unchanged in the last four months and are near the peak levels reached over the summer of 2022. Although higher mortgage rates have suppressed demand, low inventories of homes for sale have helped maintain relatively flat house prices.
While prices depreciated significantly around August, any depreciation since then has been milder. Today’s home prices are not in a freefall, and any declines are likely to be minimal compared to the growth we’ve seen over the last few years.
If you’re concerned about the impact of even the smallest decline in prices on your current home, it’s important to keep things in perspective. Selma Hepp, Chief Economist at CoreLogic, notes that price declines since last spring’s peak add up to only a 3% cumulative drop.
However, it’s crucial to remember that local markets can vary significantly. For this reason, it’s vital to rely on the expertise of a local real estate professional for the most up-to-date information on home prices in your area.
In conclusion, to make informed decisions about your real estate goals, reach out to a local real estate expert today. They can provide you with personalized insights and guidance that take into account the unique factors influencing your local market. Don’t let misleading headlines and confusing data cloud your judgment. Contact a real estate professional today and take the first step towards achieving your real estate goals.
Call us today to schedule a consultation and discuss how we can help you navigate the current real estate market.
The Impact of Mortgage Rates on Your Home Selling Decision
Homeownership is a major milestone, and with the current state of the real estate market, it’s essential to weigh all the factors that could impact your decision to buy or sell a property. The pandemic brought about record-low mortgage rates, which led many homeowners to buy or refinance their homes. However, rates doubled in 2022, causing some of those homeowners to put their plans to move on hold.
Today, 93% of outstanding mortgages have a rate at or below 6%, which is still lower than current market rates. But it’s important to remember that mortgage rates aren’t the only thing to consider when making a move. Your mortgage rate is important, but there are plenty of other reasons why you may still need or want to move, such as downsizing, needing more space, or a desire for better schools.
If you find yourself in this situation, it may be time to sell your current home and start the search for a new one. Work with a trusted real estate professional who can help you navigate the process and make a confident decision. They’ll be able to lay out all your options and provide expert guidance throughout the process.
In conclusion, when deciding whether or not to move, it’s essential to consider all the factors that impact your decision, including your mortgage rate. Don’t let the fear of losing a low mortgage rate hold you back from finding the perfect home for you and your family. Contact a local real estate professional today and start exploring your options!
Ready to start your home-selling journey? Connect with one of our Real Estate Professionals today and get expert guidance and advice on finding the perfect home for you and your family.
