The National Association of Realtors (NAR) released their latest
QuarterlyMetro Home Price Report last week. The report revealed that severely
lacking inventory across the country drained sales growth and kept home prices
rising at a steady clip in nearly all metro areas. Home prices rose 5.3% over
the last quarter across all metros.
Lawrence Yun, Chief Economist at NAR, discussed the impact of low
inventory on buyers in the report:
“Unfortunately, the pace of new listings were unable to replace what was
quickly sold. Home shoppers had little to choose from, and many had to outbid
others in order to close on a home. The end result was a slowdown in sales from
earlier in the year, steadfast price growth and weakening affordability
conditions.”
What this
means to sellers
Rising prices are a homeowner’s best friend. As reported by the
Washington Post in a recent article post:
“The rise in median sales prices has made current homeowners much more
willing to sell their home, and that willingness is one of the main drivers
behind the inventory that does make it on to the market. While it hasn’t been
enough to meet demand, it has made the situation much better, compared with
even three or four years ago.”
What this
means to buyers
In a market where prices are rising, buyers should take into account the
cost of waiting. Obviously, they will pay more for the same house later this
year or next year. However, as Construction Dive reported, the amount
of cash needed to purchase that home will also increase.
“These factors have created a situation where the market keeps moving
the goalposts in terms of the down payment necessary for first-time homebuyers
to get into a home.”
Bottom Line
If you’re thinking of selling and moving down,
waiting might make sense. If you are a first-time buyer or a seller thinking of
moving up, waiting probably doesn’t make sense.
We are The Militello Team, selling real estate North of Boston in Essex County on the North Shore for over 40 years! Call us today at (978) 500-1480 and put our experience to work for you!
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THE MILITELLO TEAM
Joseph (978) 815-3877
Kathleen (978) 500-1480
