New reports about the housing market show that the residential real estate is still going strong despite the ongoing affordability challenges.
Last week, the National Association of Realtors released their Pending Home Sales data for June. The report shows that the number of pending home sales – which are signed contracts on existing single-family homes and condos –rose 0.3% from May to June.
This is the first time since February that pending home sales have increased. This is significant because it shows that even though mortgage rates remain elevated, home buyers are starting to accept the higher borrowing costs and move forward with their homebuying plans.
There is still a lot more demand for homes than there are homes available, and we’ve been seeing the price effects of the low housing supply for months now. Prices have been steadily rising since February, and in many areas have already eclipsed the prices we saw at the peak of the market in June 2022.
Here are the current 2023 monthly home price changes from the top industry reports:
Supply and demand economics are working to keep home prices steady, and the recent pending home sales numbers show there are still plenty of people out there who want to buy homes even in the face of higher rates.
If you have clients who want to buy but are still worried about a housing market crash, this would be great to share with them! And as always, please don’t hesitate to reach out to me if you have any questions 😊
We are here and happy to help!
Tim Erickson
P: (652) 451-2273
E: tim.erickson@goluminate.com
W: www.TimEricksonMortgage.com
Mark Henderson
P: (651) 398-3477
E: mark.henderson@goluminate.com
W: www.MarkHendersonMortgage.com