Existing home sales fell 3.4% in May while the median home price rose above $400,000 for the first time, according to data just released by the National Association of Realtors (NAR). Despite the headlines, these numbers aren’t necessarily a reason to panic.
While yes, home sales are down overall, we’re still in a “wait and see” moment. The market needs to settle in at these rate levels and we’ll look to see what the longer-term impacts of macroeconomic conditions – especially inflation – will be on housing. Buyers should also keep in mind that this data is retrospective, and doesn’t necessarily represent the current market conditions.
It’s possible that we will begin to see inventory increase and buyer demand cool. But the coming months remain uncertain, and there are signs that the real estate market could remain strong. Just remember that every market and buyer is slightly different, or in other words: don’t assume that current conditions automatically mean it’s a bad time to search for a home.
– Robert Heck, Vice President of Mortgage @ Morty
Read more of Robert’s recent insights:
In case you missed it…
- This week’s CNBC article on the current housing downturn covers many of the reasons I still don’t believe we’re in a housing bubble.
- If you’re looking for a low-down payment option, Fannie Mae’s HomeReady program might be one to consider.
- Last call to earn a $250 gift card: Get pre-approved in June and close anytime in 2022. See full terms and conditions for eligibility.
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