We'd normally start with the good news first, but we're lacking content in that category so let's get straight into the numbers.
January was a rough month for the housing market: Pending Home Sales fell by 4.7% in January, reaching their lowest levels since October 2014; furthermore, Existing Home Sales fell by 3.2% their largest drop in 3 years. Compared to a year ago, available listings were down 9.5%, undoubtedly contributing to falling purchases.
Troubling economic trends continue to undermine the health of the U.S. housing market. Homebuilders are starting new-home construction at a slower than average pace, and wealthy investors are looking to unload single-family home assets on to the market. Ideally, these single-family homes will help meet market demand for more affordable housing, but given the current market conditions, professional wealth-management investors could choose to sell their assets in small quantities, preserving higher profits and maintaining market demand. It's not unreasonable to assume their sell-off would only begin after new-home starts present a threat to their margins as production increases.
Despite all the doom and gloom, Dr. Lawrence Yun of the National Association of REALTORS believes home sales will remain constant from 2017 to 2018 (roughly 5.5 million homes).
How is market demand, lack of affordable housing, and increasing interest rates effecting your homeowner experience? Let us know on Twitter (@NC_Homeowners) or on Facebook.