Real Estate Market Update
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Get the latest real estate news with this quick and easy-to-understand update!
Real Estate Market
- In June 2023, the median sales price of existing homes in the U.S. rose to $410,200. That's a 13.6% increase from January 2023 but a 0.8% decrease from June 2022.
- The average rate of a 30-year fixed home loan as of August 17, 2023 is 7.09% - that's a 32.1% increase from the same time last year, and the highest rate we’ve seen in over 20 years! Mortgage rates remain high after the Fed's decision to hike the federal funds rate a quarter of a point on July 26 to help curb inflation. According to their latest projection, Fed officials estimate possibly one more rate hike this year.
- Housing inventory is still historically low - As of August 7, 2023 inventory was down 49.3% compared to the same week in 2019. Housing inventory has been one of the biggest hurdles for buyers this year, as homeowners stay put with their record-low rates from 2020 and 2021.
- Though homes spent more time on the market this June than last June, they still spent 10 fewer days listed than in June 2017 - 2019. This steady decline shows a hopeful return to normalcy and pre-pandemic times.
- The U.S. annual inflation rate has slowed to just 3.2% compared to the high of 8.5% one year ago. Inflation this year has risen at its slowest pace in more than two years.
- 187,00 new jobs were added last month, fewer than economists estimated initially, making the last two months the weakest gains in more than two years. Unemployment sits at 3.5% as of July 2023.
- In the second quarter, U.S. Gross Domestic Product grew 2.4%, which was higher than Q1 and way above market expectations of 1.8%. A growing GDP signifies a healthy economy.
What This Means for You
Though we are seeing positive adjustments in real estate and the financial market, there's still room for improvement. Inventory and affordability remain a problem for new buyers entering the market as homeowners stay reluctant to sell due to high mortgage rates.
Prices and mortgage rates are expected to fall in the coming months, but buyers should focus on setting strong budgeting habits. In most cases, the more money you put down upfront, the lower your rate will be. So, it's essential that buyers take a look at their finances, set goals, and prepare for all the expenses of buying a home.
If you’re a first-time buyer struggling to get your offer accepted, we have programs designed to help you succeed. Our new $10,000 Seller Guarantee is a surefire way to get your offer noticed and accepted by today’s sellers - Connect with one of our Home Loan Specialists to learn more about our home buying programs!