The housing market in the U.S. is currently in the midst of a shift. In the latest Housing Market Tracker from realtor.com®, the inventory of homes for sale declined for the fourth month in a row, to a 4-month low, as mortgage rates continued to move higher. This decrease in supply of available homes is especially seen in the areas of entry-level housing.
As supply of housing decreases and demand increases due to higher interest rates, the price of homes is also increasing. The national median list price was up 1.3% year-over-year in August, a figure that hasn’t been seen since October 2018. The median list price increased in all but two of the nation’s largest metros.
The impact of the housing market shift is being felt throughout the nation. With inventory decreasing, people are finding it more difficult to enter the market, especially those looking to make their first home purchase. Existing homeowners who want to move up in the market are also having difficulty due to limited options.
The shift in the housing market is an indicator of current economic conditions. With mortgage rates continuing to rise and inventory decreasing, it will be interesting to see what other market changes will come as a result. It is also important to note that as the market is in flux, potential buyers and sellers should be aware of the changing market conditions.
You can read this full article at: https://www.housingwire.com/articles/housing-market-tracker-inventory-drops-as-mortgage-rates-move-higher/(subscription required)
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