Shift Towards a More Balanced Housing Market, Survey Shows
Recent years have seen a tough and costly housing market, but recent indications suggest a shift towards a more balanced scenario.
According to a recent Housing Market Survey, 44% of real estate agents now observe a balanced market between buyers and sellers. This is a notable increase from just 30% in the previous year, marking the start of a promising trend.
Buyers and Sellers Both Have Leverage
Jeremy Kane, a seasoned real estate agent, notes that the balance seems to depend on several factors including the home, the neighborhood, its condition, and the asking price. Both buyers and sellers, he says, now have some leverage in this balanced market.
The Housing Market Survey is a nationwide assessment involving randomly chosen real estate agents across the country. For the recent second-quarter survey, 53 agents offered their insights.
Slight Increase in Home Sales
Home sales in May saw a slight improvement, rising by 3% compared to the same period last year. The increase is attributed to an increase in supply and a stabilization in prices.
Home sellers are reportedly becoming more realistic with their pricing, moving away from the steep rises seen at the onset of the pandemic.
Plateau in Prices
Bruce Jones, a real estate agent, shares that disputes over pricing have decreased. While there isn't a significant decrease in prices, there seems to be a plateau. Homes that are priced right are moving quickly in the market.
In the recent Housing Market Survey, agents who reported at least one price cut in active listings saw a substantial drop, from 89% in the previous year to 57% this year.
Minimal Increase in Home Prices
Home prices remain slightly higher than last year, just under 1%, as per the national home price index. Yet sellers appear to be pricing more in line with the market, resulting in fewer price cuts.
Asking prices in June were down by 2.5% compared to the previous year. This is the largest annual drop since tracking began in 2017 and marks the eighth consecutive month of declines.
Importance of Right Pricing
Martha Thorn, an experienced real estate agent, stresses the importance of correct pricing to ensure a quick sale. She emphasizes to sellers that her business is in selling homes, not storing them, hence the importance of setting the right price.
Fluctuating Mortgage Rates
Mortgage rates have been volatile lately. They fell last summer to a low of 5.99% for the 30-year fixed mortgage. However, they then spiked at the onset of the year. The peak was at 6.75%, but rates have since hovered around 6.6%.
An Increase in Inventory
Inventory has increased by just under 2% from the previous year, and new listings rose by 2.4%. While the market is still considered lean, it's not as bad as it was in the recent past. Currently, there are about 1.1 million homes listed for sale, a significant increase from about 614,000 a few years ago.
Real Estate Agents' Outlook
Despite these changes, real estate agents seem less optimistic about future sales. In the latest survey, only 19% anticipate an improvement in sales in the near future, down from 48% in the previous year. The majority of agents, 67%, believe that sales will remain steady.
Recent years have seen a tough and costly housing market, but recent indications suggest a shift towards a more balanced scenario.
According to a recent Housing Market Survey, 44% of real estate agents now observe a balanced market between buyers and sellers. This is a notable increase from just 30% in the previous year, marking the start of a promising trend.
Buyers and Sellers Both Have Leverage
Jeremy Kane, a seasoned real estate agent, notes that the balance seems to depend on several factors including the home, the neighborhood, its condition, and the asking price. Both buyers and sellers, he says, now have some leverage in this balanced market.
The Housing Market Survey is a nationwide assessment involving randomly chosen real estate agents across the country. For the recent second-quarter survey, 53 agents offered their insights.
Slight Increase in Home Sales
Home sales in May saw a slight improvement, rising by 3% compared to the same period last year. The increase is attributed to an increase in supply and a stabilization in prices.
Home sellers are reportedly becoming more realistic with their pricing, moving away from the steep rises seen at the onset of the pandemic.
Plateau in Prices
Bruce Jones, a real estate agent, shares that disputes over pricing have decreased. While there isn't a significant decrease in prices, there seems to be a plateau. Homes that are priced right are moving quickly in the market.
In the recent Housing Market Survey, agents who reported at least one price cut in active listings saw a substantial drop, from 89% in the previous year to 57% this year.
Minimal Increase in Home Prices
Home prices remain slightly higher than last year, just under 1%, as per the national home price index. Yet sellers appear to be pricing more in line with the market, resulting in fewer price cuts.
Asking prices in June were down by 2.5% compared to the previous year. This is the largest annual drop since tracking began in 2017 and marks the eighth consecutive month of declines.
Importance of Right Pricing
Martha Thorn, an experienced real estate agent, stresses the importance of correct pricing to ensure a quick sale. She emphasizes to sellers that her business is in selling homes, not storing them, hence the importance of setting the right price.
Fluctuating Mortgage Rates
Mortgage rates have been volatile lately. They fell last summer to a low of 5.99% for the 30-year fixed mortgage. However, they then spiked at the onset of the year. The peak was at 6.75%, but rates have since hovered around 6.6%.
An Increase in Inventory
Inventory has increased by just under 2% from the previous year, and new listings rose by 2.4%. While the market is still considered lean, it's not as bad as it was in the recent past. Currently, there are about 1.1 million homes listed for sale, a significant increase from about 614,000 a few years ago.
Real Estate Agents' Outlook
Despite these changes, real estate agents seem less optimistic about future sales. In the latest survey, only 19% anticipate an improvement in sales in the near future, down from 48% in the previous year. The majority of agents, 67%, believe that sales will remain steady.