This lack of predictability causes many buyers and sellers to just sit and wait,” says Steve Simmons, founder of October Real Estate in Los Angeles. “I believe the stark rise in interest rates scare both buyers and sellers they don’t know if the rates will stay or continue to increase. economy the last few years, there are signs of wear-namely, rising interest rates making it harder for buyers to access affordable housing. While housing has been the star of the U.S. Housing experts say they are keeping a watchful eye on the economy, which is being pulled in all directions by inflation, skyrocketing gas prices, the war in Ukraine and Covid, to name a few. “Even if a buyer can push pause on buying to later in the year or 2023, there isn’t likely to be significant improvement in prices or interest rates.” Waiting may not be a viable option,” says Krista Forsberg, a real estate agent at Keller Williams Realty in Edina, Minnesota. “Deciding to buy now or wait is going to depend on the individual buyer’s motivation and situation. Many housing insiders warn buyers against trying to time the market as the economy wades through this period of uncertainty. Housing Market Predictions for August 2022 entering a recession over the next 12 months. The MBA hasn’t included a recession in their baseline forecast, but they say it’s a “coin flip at this point,” estimating a roughly 50% chance of the U.S. But on the other hand, the job market and consumer spending is still strong. And right now, the economy is on shifting sands-on one hand, there are signs of a weakening economy as the gross domestic product (GDP) has declined for two consecutive quarters, which some economists say indicates a recession. The current change in the housing market is partly due to the economy at large and consumer sentiment. Mortgage applications dropped to the lowest level at the end of June, marking the biggest slump in 22 years, according to the Mortgage Bankers Association (MBA). With homes nearing half a million dollars, buyers are beginning to pull out of the market. In June, the national median listing price for single-family homes was $450,000, up 16.9% from the same time last year and more than 31% from June 2020, according to. But the numbers still show the market is quite resilient, and costly. Home prices have continued to surge despite higher mortgage rates and an increase in housing supply-factors that typically put downward pressure on home prices.
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