What can I say? There is a great deal of instability in the national housing market right now. Even with positive factors such as increasing employment and declining inflation, the housing market remains shaky. Last week’s decision by the Fed not to lower rates only added fuel to buyers' fears about making a home purchase.

Now, with the bombing of Iran and the uncertainty surrounding where that may lead our nation and economy, don't expect housing market stability to improve anytime soon. Where the market goes from here into summer is anyone’s guess.

On the bright side, uncertain markets always present opportunities. For home buyers, consider properties that have been on the market for a while and have reduced their prices—seller motivation is often higher in these cases.

For sellers, price your home in line with the current market and resist the urge to “test” it. There are still buyers out there who need to move. If your home meets their needs and is priced competitively, it may stand out and sell. Homes are still selling—you just need to stay informed and adjust your strategy as needed.

The following is an article from the National Association of Realtors that addresses the current state of the housing market.

Although this spring hasn’t been a lively home-sales period nationally—sales remain near a 30-year low—“the latest mortgage application data is clearly showing some positive encouragement,” says Lawrence Yun, chief economist of the National Association of Realtors. 

 

For the week ending June 20, mortgage applications were up 20% compared to the same week a year ago, according to the Mortgage Bankers Association.The uptick comes even as mortgage rates have held relatively steady with a slight bump this past week.

“Despite ongoing uncertainty surrounding the economy, home buyers seem to be taking advantage of loosening housing inventory in certain markets,” says Joel Kan, deputy chief economist at MBA. In fact, housing inventory is up 20% year over year. But if looked at nationally, those additional listings haven’t yet translated into more closed sales this spring.

Mortgage rates remain the critical factor. Yun says he’s closely watching inflation data and the Federal Reserve’s next move on its short-term benchmark. If mortgage rates dip—even down to around 6.5%—he believes it could trigger a meaningful turnaround, boosting sales activity by as much as 10%. “Even incremental, small changes [in mortgage rates], I think, will bring more buyers,” Yun says.

The Latest on Mortgage Rates

“Mortgage rates have moved within a narrow range for the past few months—and this week is no different,” says Sam Khater, Freddie Mac’s chief economist. However, “rate stability, improving inventory and slower house price growth are an encouraging combination as we celebrate National Homeownership Month.”

 

Have an awesome week!

Stay Healthy! Stay Safe! Remain Positive! Trust In God!

 

Sincerely,

 

Galand