The ultra-competitive spring housing market seems to have every appearance of continuing through the summer season. Rising home prices, low inventory, and strong demand are the driving force behind buyer frustration. Even as new listings come on the market, buyers are being faced with multiple offers on almost every property. Danielle Hale, chief economist for Realtor.com announced, “I think it’s fair to say this is the most competitive housing market we’ve seen in recorded history.”
Housing Market Data
Mortgage Rates – After a sharp run-up in the early part of 2018, mortgage rates have stabilized over the last few months. According to Freddie Mac, have now declined in three of the past four weeks.
Home Prices- According to the April Case-Shiller Index, Home price gains are still unrelenting, reflecting a yearly increase of 6.4%.
Supply- According to realtor.com data, inventory has decreased for 42 consecutive months and is down 8.5% from last year.
Demand- People listing their homes for sale in higher numbers this April and May is good news for buyers, and good news for home sales, but it’s still not enough to satisfy buyer demand, which means price increases will lilkely continue.
Mortgage Applications- According to the Mortgage Bankers Association, total mortgage application volume fell 4.9%, = last week compared with the previous week.
Overall Analysis- According to Redfin’s head of analytics, Pete Ziemkiewics, “People listing their homes for sale in higher numbers this April and May is good news for buyers, and good news for home sales. But it’s still not enough to satisfy buyer demand, which means price increases will likely continue.”