AUGUST 2024
REAL ESTATE MARKET UPDATE
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Real Estate Market Report
OverviewThe current real estate market is experiencing notable shifts, particularly in the residential sector. This report highlights key trends, including changes in mortgage rates, inventory levels, and seasonal market behaviors.
Key Highlights
• Mortgage Rates and Market Dynamics:
Mortgage rates have recently decreased, influenced by the 10-year treasury and lower inflation numbers.
Despite the drop in mortgage rates, home prices continue to rise, posing buyer affordability challenges.
• Inventory Levels:
Inventory has increased but remains below pre-pandemic levels, at approximately 48% of 2019 levels.
The market is balanced, with a slight increase in inventory and sales compared to the previous year.
• Seasonal Normals:
The market follows typical seasonal patterns, with fluctuations in activity around major holidays and school schedules.
Seasonal cycles impact pending home sales and inventory levels, with notable slowdowns and surges throughout the year.
• Buyer and Seller Dynamics:
Buyers are driving the market, with price reductions occurring when sellers overestimate their home's value.
The importance of accurate pricing is emphasized, as buyers are well-informed and make decisions based on perceived value.
• Market Trends and Data:
Pending home sales have benefited from increased inventory, though overall levels are still low.
Year-over-year comparisons show a 10% increase in average sales prices, with active prices slightly declining as sellers adjust to market conditions.
• New Construction and Resale Homes:
New construction homes are facing competition from resale homes, which often offer better value.
Builders are offering incentives to attract buyers, but the market is shifting towards resale properties due to affordability.
The real estate market remains dynamic, with mortgage rates and inventory levels playing crucial roles. Understanding seasonal patterns and market trends is essential for both buyers and sellers to navigate the current landscape effectively. As rates continue to adjust, the market is expected to maintain its balance, with ongoing shifts in buyer preferences and inventory availability.
OverviewThe current real estate market is experiencing notable shifts, particularly in the residential sector. This report highlights key trends, including changes in mortgage rates, inventory levels, and seasonal market behaviors.
Key Highlights
• Mortgage Rates and Market Dynamics:
Mortgage rates have recently decreased, influenced by the 10-year treasury and lower inflation numbers.
Despite the drop in mortgage rates, home prices continue to rise, posing buyer affordability challenges.
• Inventory Levels:
Inventory has increased but remains below pre-pandemic levels, at approximately 48% of 2019 levels.
The market is balanced, with a slight increase in inventory and sales compared to the previous year.
• Seasonal Normals:
The market follows typical seasonal patterns, with fluctuations in activity around major holidays and school schedules.
Seasonal cycles impact pending home sales and inventory levels, with notable slowdowns and surges throughout the year.
• Buyer and Seller Dynamics:
Buyers are driving the market, with price reductions occurring when sellers overestimate their home's value.
The importance of accurate pricing is emphasized, as buyers are well-informed and make decisions based on perceived value.
• Market Trends and Data:
Pending home sales have benefited from increased inventory, though overall levels are still low.
Year-over-year comparisons show a 10% increase in average sales prices, with active prices slightly declining as sellers adjust to market conditions.
• New Construction and Resale Homes:
New construction homes are facing competition from resale homes, which often offer better value.
Builders are offering incentives to attract buyers, but the market is shifting towards resale properties due to affordability.
The real estate market remains dynamic, with mortgage rates and inventory levels playing crucial roles. Understanding seasonal patterns and market trends is essential for both buyers and sellers to navigate the current landscape effectively. As rates continue to adjust, the market is expected to maintain its balance, with ongoing shifts in buyer preferences and inventory availability.
NWMLS Market Snapshot - JULY 2024
George Moorhead of Bentley Properties talks about Inflations Causing Rates To Go Up and Is The Real Estate Market Crashing? Plus, Top 5 Things You Need To Look For When Getting Mortgage Rates
