Published Date 9/19/2022
Throwing yourself into a pool of homebuyers today is not the most enticing prospect. Simultaneously squeezed by rising mortgage rates and ever-higher home prices is not an envious position in which to find yourself.
According to Realtor’s Judy Dutton, however, at long last some relief seems to be on the horizon. Real estate stats for the week ending Sept. 10 indicate that the runaway real estate inflation that homebuyers have been struggling to keep up with is slowing down—if just by a bit. Use the comparison of a teenager whose growth spurt is almost over. While he or she is still growing, the rate of growth has slowed.
“Although home prices continue to register double-digit growth relative to one year ago, the rate took a notable step back this week to the lowest pace since January,” notes Realtor.com Chief Economist Danielle Hale. Meanwhile, Dutton reveals the latest figures and what they mean for both homebuyers and sellers so that all can stay on top of today’s fast-changing market. She reports that in August, home prices hovered at a national median of $435,000 and prices are still rising—by 11.7% for the week ending Sept. 10 compared with this same week last year.
Okay. So it’s the 39th straight week of double-digit growth. But the glimmer of good news for buyers is that this week’s rate marks the lowest level seen since January. And that’s meaningful. Price growth in previous weeks clocked in even higher—in the 15%–16% range throughout July, followed by the 13%–15% range in August. In this context, this latest week’s 11.7% price growth doesn’t seem so bad. Add to that the fact that summer’s home-buying frenzy is over and it points to real estate prices falling along with seasonal temperatures.
Interestingly enough, the numbers suggest that the best time of year to buy a house is the last week of September, when prices are slated to be $20,000 lower than June’s all-time high of $450,000. “In other words, home shoppers who want to double down on their efforts right when the cards are heavily stacked in their favor had best hit those open houses hard right now before this prime window of opportunity closes,” says Dutton.
You’d hope for more inventory to hit the market, but don’t hold your breath. Dutton says for the week ending Sept. 10, the number of new home sellers putting their properties on the market dropped by 13% compared with this same week last year —the 10th straight week of year-over-year declines, and a double-digit drop at that. Hale admits, “Sellers are less optimistic about conditions compared to a year ago, which is a likely factor behind the scarcer new listings trend,” says Hale.
Everything can have a silver lining in the big scheme of things, however. “While the number of newly listed options was smaller, today’s shoppers have more than five homes to consider for every four they had at this time a year ago,” Hale explains. And with listings lingering on the market nearly a week longer than a year ago, you have more time to decide.
The pandemic also changed the breadth of buyer-desired geographics, however. More shoppers than ever before are willing to look across state lines for a home and the more affordable areas are likely to see ongoing demand.
Realtor, TBWS
All information furnished has been forwarded to you and is provided by thetbwsgroup only for informational purposes. Forecasting shall be considered as events which may be expected but not guaranteed. Neither the forwarding party and/or company nor thetbwsgroup assume any responsibility to any person who relies on information or forecasting contained in this report and disclaims all liability in respect to decisions or actions, or lack thereof based on any or all of the contents of this report.
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