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The housing market has had a challenging year. We’ve been bringing you monthly insights regarding inventory, affordability, and your distinct market advantage. This month’s mortgage update focuses on answering some of the largest questions for buyers as we move into the tail end of summer.
Although the market is shifting away from highly favoring sellers, many are still receiving solid offers. There is an industry concern about affordability challenges. Realtor.com reported that inventory has been building since May, and it continues to increase. Homes in July sold in 35 days, a full two-week increase since June.
Despite this, rates and home prices continue to fluctuate. In June, the national median listing price for single-family homes was $450,000, according to Realtor.com. This was a 16.9% increase from June 2021 and 31% from June 2020.
In addition, the Mortgage Bankers Association (MBA) reported that mortgage applications dropped in June as affordability continues to be a major concern for current buyers. In the same month, wages grew 6.7%, falling behind the 9.1% increase in inflation, according to Forbes.
The economy, at large, is being affected by inflation, high gas prices, the COVID-19 pandemic, and the war in Ukraine. Nationally, gross domestic product has declined for two consecutive quarters. Economists say this indicates a recession, but consumer spending is still strong as we move into back-to-school season.
There are still possibilities for success in today’s market. Experts at Forbes warn that attempting to time the market may be difficult for the next few months. This lack of predictability has caused many buyers and sellers to sit and wait. In many situations, the best course of action is to speak with an expert, in particular a Real Estate or Mortgage professional.
Working with a Real Estate Agent will provide you with detailed information about your local housing market, such as new listings and prices to expect. In addition, Real Estate Agents are expert negotiators when it’s time to make an offer.
Speak openly with your Loan Originator about your affordability concerns. Using mortgage or affordability calculators will help you calculate what possible payments could look like. Utilizing loan programs like the Lock and Shop and Closing Guarantee paired with pre-approval can give you more options as well.
Conferring with experts in current market conditions can help you move forward to purchase with confidence. When you’re ready to enter the market confidently and find your home sweet home, contact us.
(Sources: Realtor.com, Forbes, National Association of Realtors, CalculatedRisk)
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