{"id":4189,"date":"2023-12-22T10:50:05","date_gmt":"2023-12-22T10:50:05","guid":{"rendered":"http:\/\/billingsrealtybrokers.paradiseinnovations.com\/index.php\/2023\/12\/22\/latest-home-sales-data-offers-hope-is-americas-housing-market-finally-looking-up\/"},"modified":"2023-12-22T10:50:05","modified_gmt":"2023-12-22T10:50:05","slug":"latest-home-sales-data-offers-hope-is-americas-housing-market-finally-looking-up","status":"publish","type":"post","link":"http:\/\/billingsrealtybrokers.paradiseinnovations.com\/index.php\/2023\/12\/22\/latest-home-sales-data-offers-hope-is-americas-housing-market-finally-looking-up\/","title":{"rendered":"Latest Home Sales Data Offers Hope: Is America\u2019s Housing Market Finally Looking Up?"},"content":{"rendered":"

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Has the housing market finally turned a corner to end the year looking merry and bright?<\/p>\n

A new report from the National Association of Realtors\u00ae<\/a> has found that after five straight months of declines, sales of existing homes ticked up by 0.8%<\/a> in November compared with the previous month, to a seasonally adjusted annual rate of 3.82 million.<\/p>\n

This data, released on Wednesday, offers a glimmer of hope that, although home sales throughout 2023 are slated to be at their lowest levels<\/a> since the housing crisis of 2011, America\u2019s real estate market may have at long last hit bottom\u2014and could be poised to begin a slow but steady recovery next year.<\/p>\n

\u2018We expect the market will see small wins\u2019<\/h2>\n

The real estate market\u2019s recovery will depend heavily on mortgage rates\u2014which reached a multidecade high<\/a> in October with rates for a 30-year fixed loan averaging 7.49%, according to Freddie Mac.<\/p>\n

Since then, rates have dropped to 6.67% for the week ending Dec. 21, providing some relief to homebuyers who are grappling with affordability and luring more home shoppers from the sidelines.<\/p>\n

In fact, this November NAR report \u201cstill reflects the buyer bidding process in most of October when mortgage rates were at a two-decade high,\u201d NAR Chief Economist Lawrence Yun<\/strong><\/a> noted in a press on Wednesday. \u201cA marked turn can be expected as mortgage rates have plunged in recent weeks.\u201d<\/p>\n

Realtor.com\u00ae<\/a> economic research analyst Hannah Jones<\/strong><\/a> also thinks the NAR report portends good things for housing in 2024.<\/p>\n

\u201cThe data hints at the impact that falling mortgage rates will have on buyer activity,\u201d Jones explains. \u201cThough seller activity remains stifled, the existing-home sales data suggest that buyers are ready to respond to more affordable housing conditions. While buyer activity is likely to remain relatively low, any improvement in housing affordability is likely to bring more buyers into the market.\u201d<\/p>\n

As a result, \u201cthough housing affordability is likely to persist as a key challenge to prospective buyers next year, we expect that the market will see small wins with lower mortgage rates and softening home prices,\u201d Jones adds.<\/p>\n

What the latest housing data means for homebuyers and sellers<\/h2>\n

Yet wannabe buyers who\u2019ve put a house on their wish list for 2024 should know that they might still face formidable challenges.<\/p>\n

For one, mortgage rates might be falling, but they are still high enough that many current owners may feel \u201clocked in<\/a>\u201d to their home and their current low-interest rate loan.<\/p>\n

\u201cThe gap between the mortgage rate on the typical outstanding mortgage and today\u2019s rate remains sizable, which will keep many sellers on the sidelines,\u201d Jones explains.<\/p>\n

Meanwhile, once mortgage rates do<\/em> drop, this could release the floodgates and greatly increase competition among buyers, which could drive up home prices.<\/p>\n

\u201cBuyer activity is likely to continue heating up as long as affordability improves,\u201d Jones warns. \u201cIf buyer demand picks up faster than for-sale inventory, it is possible that prices will rise more quickly, eliminating the savings from a lower mortgage rate.\u201d<\/p>\n

In November, NAR data shows that existing homes sold for a median price of $387,600<\/a>. That\u2019s 4% higher than a year earlier, even though mortgage rates have risen over that time.<\/p>\n

The bottom line for home shoppers: Waiting until mortgage rates drop might backfire, so if they\u2019re ready to buy a house now, they might want to get out there to stay ahead of the crowds that will no doubt arrive once rates subside. (Here are more reasons why buying a house now makes sense<\/a> despite high rates.)<\/p>\n

\u201cBuyers should evaluate their finances and preferences to determine if they are able to find a suitable home in their budget in today\u2019s market,\u201d Jones urges.<\/p>\n

For those who\u2019d rather wait and see, there is a silver lining: \u201cThough competition may heat up in the spring, inventory will likely pick up as well, offering buyers more options,\u201d Jones says.<\/p>\n

The lesson applies to homeowners, too: Those who put their house on the market now will likely enjoy less competition from other sellers, and that might result in higher profits.<\/p>\n

\u201cFor homeowners considering a home sale, a well-priced, move-in ready home is likely to attract buyer attention,\u201d says Jones. \u201cEspecially as for-sale options are scarce in many markets.\u201d<\/p>\n

The post Latest Home Sales Data Offers Hope: Is America\u2019s Housing Market Finally Looking Up?<\/a> appeared first on Real Estate News & Insights | realtor.com\u00ae<\/a>.<\/p>","protected":false},"excerpt":{"rendered":"

Getty Images Has the housing market finally turned a corner to end the year looking merry and bright? A new report from the National Association of Realtors\u00ae has found that after five straight months of declines, sales of existing homes ticked up by 0.8% in November compared with the previous month, to a seasonally adjusted…Read More→<\/a><\/p>\n","protected":false},"author":0,"featured_media":4190,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"class_list":["post-4189","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-uncategorized"],"_links":{"self":[{"href":"http:\/\/billingsrealtybrokers.paradiseinnovations.com\/index.php\/wp-json\/wp\/v2\/posts\/4189","targetHints":{"allow":["GET"]}}],"collection":[{"href":"http:\/\/billingsrealtybrokers.paradiseinnovations.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"http:\/\/billingsrealtybrokers.paradiseinnovations.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"replies":[{"embeddable":true,"href":"http:\/\/billingsrealtybrokers.paradiseinnovations.com\/index.php\/wp-json\/wp\/v2\/comments?post=4189"}],"version-history":[{"count":0,"href":"http:\/\/billingsrealtybrokers.paradiseinnovations.com\/index.php\/wp-json\/wp\/v2\/posts\/4189\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"http:\/\/billingsrealtybrokers.paradiseinnovations.com\/index.php\/wp-json\/wp\/v2\/media\/4190"}],"wp:attachment":[{"href":"http:\/\/billingsrealtybrokers.paradiseinnovations.com\/index.php\/wp-json\/wp\/v2\/media?parent=4189"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/billingsrealtybrokers.paradiseinnovations.com\/index.php\/wp-json\/wp\/v2\/categories?post=4189"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/billingsrealtybrokers.paradiseinnovations.com\/index.php\/wp-json\/wp\/v2\/tags?post=4189"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}