Thursday, February 23, 2023 / by Barbara Oleska
The biggest challenge the housing market’s facing is how few homes there are for sale. Mark Fleming, Chief Economist at First American, explains the root causes of today’s low supply:
“Two dynamics are keeping existing-home inventory historically low – rate-locked existing homeowners and the fear of not finding something to buy.”
Let’s break down these two big issues in today’s housing market.
According to the Federal Housing Finance Agency (FHFA), the average interest rate for current homeowners with mortgages is less than 4% (see graph below):
But today, the typical mortgage rate offered to buyers is over 6%. As a result, many homeowners are opting to stay put instead of moving to another home with a higher borrowing cost. This is a situation known as being rate locked.
When so many homeowners are rate locked and reluctant to sel. ...
Thursday, December 15, 2022 / by Barbara Oleska
If you’re trying to decide whether or not to sell your house, recent headlines about home prices may be top of mind. And if those stories have you wondering what that means for your home’s value, here’s what you really need to know.
What’s Really Happening with Home Prices?
It’s possible you’ve seen news stories mentioning a drop in home values or home price depreciation, but it’s important to remember those headlines are designed to make a big impression in just a few words. But what headlines aren’t always great at is painting the full picture.
While home prices are down slightly month-over-month in some markets, it’s also true that home values are up nationally on a year-over-year basis. The graph below uses the latest data from S&P Case-Shiller to help tell the story of what’s actually happening in the housing market today:
As the graph shows, it’s true home. ...
Thursday, June 23, 2022 / by Barbara Oleska
I hope you are enjoying your summer! The article below shares national insight for the overall market. Locally, we are seeing a bit of an increase in inventory, which is a relief! Sales are a bit slower, but ANYTHING feels slower after the crazy. Properties are lingering on the market longer (except mine, of course, because I get it DONE!). You've probably heard about many listings reducing (adjusting) their prices. It's not because prices are falling; it's because sellers got ahead of themselves. Pricing ahead of the market is a mistake. You have to be IN the market.
When you hear "bubble", know that this is NOT 2008. Our fundamentals are VERY different coming into this period. Yes, appreciation will slow down, but I really don't think we'll see a downturn in the South Florida market. Too many people are moving here and unless we get a huge wave of inventory, it will still be the game of supply and demand.
A fair amount of the cash has dried up. I can speculate that's becaus ...