Are you confused about the state of the real estate market right now?
Values continue to rise through the roof; the median national average is currently 10.8% up year-on-year, yet the National Association of Realtors (NAR) reports fewer homes are coming on the market as sellers hold their most important asset.
NAR’s latest numbers say home sales dipped 5.9% from June to a seasonally adjusted annual rate of 4.81 million in July.
All varieties of housing, principally detached homes, apartments and condos, registered their 125th consecutive month of value growth. So, if you’re an owner, you’re enjoying the longest-ever winning streak in American property history.
Housing of all types averaged a sales price of $403,800 in June, up 10.8% from July 2021 ($364,600). Prices increased in all regions. And we have 1.31 million unsold homes. According to NAR, the current pace of transactions would see them all sold in a little more than three months.
So, why do prices rise when the Federal Reserve keeps increasing interest rates?
Because we have a record-low inventory created by a nationwide reluctance by owners to either upsize or downsize.
What does this mean for you?
America comprises tens of thousands of micro-markets, not one giant-sized real sector where property values on the East Coast behave the same as those on the West Coast and anywhere in between.
Pay close attention to the results being achieved in your neighborhood. Online real estate sites are a good source, but experienced local agents know what’s happening on the ground.
Averages that capture all sales mean little when you’re looking for a specific style of property, such as a condo. Most transactions involve detached houses, so they skew the numbers.
Property values are not only swayed by the supply of homes up for sale. The strength of your local economy is also a significant factor. Experience in real estate counts when the market gives off confusing signals. So, double down on finding a great agent to help sell your current property and find your next home. Take the time to seek recommendations from friends and family and interview candidates.
While media commentary may be putting off some folks from buying, this opens opportunity for buyers willing to get out there and find their dream home with less competition.