This monthly report doesn't just cover sales, but is chock full of other data that often says more about the state of the #housing market than just how many homes changed hands. Prices Inventory First-time buyer share Investor share ...and one I'm particularly fond of, the sales by price tier and share of the market by price tier. Full disclosure: I like it because they only started doing it several years ago after I bugged them for the data each month ;). April was particularly interesting because it showed the biggest jump in inventory was in $1m+ homes and consequently the biggest jump in sales was in that tier as well. $1m+ now makes up roughly 8% of total sales. Five years ago that price tier made up just 3% of sales . It shows you not just the crazy #inflation in #housing but also the lack of affordable homes even listed. Part of that is due to investors holding so many homes in that affordable category, and part of it is that builders just aren't able to build affordable homes anymore. Part of it also is that owners in that price category can't afford to move up. National Association of REALTORS® National Association of Home Builders Lawrence Yun #realestate #realestateinvesting #homeownership #personalfinance #economy #mortgage #mortgagerates
Elias Castillo
1mo
Funny that I had just asked ChatGPT about the average time on the market for homes in south Florida over $1m and it said 89 days. I’m almost there with my own listing. There’s no other answer than high interest rates.
At the height of the pandemic fed buying frenzy, I said that the real estate prices were not sustainable and we were going to have a correction. People believed that there was such a shortage of homes that prices would remain high indefinitely. Interest rates shot up. Homes are sitting longer. Prices are coming down even in hot markets like Florida and Texas including in luxury beach 🏖️ area cities. Investors, particularly institutional ones, are contributing to the shortage. At some point, it won’t be so cost effective to hold onto so much real estate that requires ongoing maintenance or, the government may intervene to set reasonable limits on the amount of real estate wealthy companies and individuals are holding via REITs and other fancy real estate holding investments. The RE market right now makes me think of the song ‘You Ain’t Seen Nothing Yet’ by Bachman Turner Overdrive from their 1974 Not Fragile album: … "You ain't seen nothing yet B-b-b-baby, you just ain't seen n-n-n-nothing yet Here's somethin' that you're never gonna forget B-b-b-baby, you just ain't seen n-n-n-nothing yet The old indicators need to be used with a grain of salt. Everything is the same but so very different now.
Hank Miller, SRA
1mo
No one cares. The reason for the increase in upper end sales is the destruction of the middle class. This economy works for those that were in before the bridge came up - those on the way or starting out are done. The reckless spending, handouts, hundreds of billions overseas and insidious inflation cannot be cured by DC gaslighting. But yeah, keep saying everything is wonderful.
Drew Anlas
1mo
If the median income borrower cannot afford the median income home in any area, prices must adjust. Rates change daily, so you cannot count on mortgage rates coming down to make purchasing a home more affordable.
Charles Dunbar 👋
1mo
That detailed report offers a comprehensive view of the housing market trends, highlighting key factors like prices, inventory, and buyer demographics. It's essential information for making informed decisions
Michael Mahoney
1mo
In the Greater Boston real estate market, the lack of inventory in the first time homebuyer price point is putting a toll on buyers. They go out every weekend an offer, but there are still too many buyers chasing the same thing. It's still a tough market for a 1st time buyer here in Boston.
Chris Radich
1mo
When is the government going to incentivize developers to build small affordable homes for the growing pool of Americans that can’t afford a $1M home. Interest rates in my opinion should stay where they are because capital shouldn’t be free like it was for the past decade.
This is not good news for anybody. We all lose sooner or later..
Real Estate Specialist at 5Market Realty
1moMiddle-middle class is showing more CC debt to lenders and they are not getting approved. Inflation on a salary and using CC to stay normal until prices go down. Guess what’s never going to really happen. Also, CC defaults are rising fast. Not sure if this will be doom and gloom, but will certainly weigh in on some downward spin.