US Housing Sales Drop Again
According to a recent report by the National Association of Realtors, existing home sales in the United States have fallen to the lowest level in more than 12 years. This news comes as no surprise to those who have been following the recent trend in the housing market. The report also showed the smallest increase in annual house prices since 2012, which is a positive sign for those looking to buy a home.
The pace of decline in existing home sales has slowed down, which has raised cautious optimism that the housing market slump could be close to reaching a bottom. However, experts caution that it will take some time before the housing market turns around. This is due in part to the fact that the 30-year fixed mortgage rate rose to an average of 6.32% last week, up from 6.12% the prior week.
This increase in mortgage rates is due to robust retail sales and labor market data, as well as strong monthly inflation readings. The second straight weekly increase in mortgage rates reflected a spike in U.S. Treasury yields. This could have a negative impact on the housing market, as it could deter potential home buyers from taking out a mortgage.
One positive aspect of the falling home sales is that it should help to improve affordability for those looking to buy a home. The smallest increase in annual house prices since 2012 is a good sign for buyers, as it means that they may be able to find a home within their budget.
The recent slump in the housing market can be attributed to a number of factors, including rising mortgage rates, a lack of inventory, and the effects of the COVID-19 pandemic. The pandemic has caused many people to reconsider their living situations, with many opting to move out of densely populated urban areas and into suburban or rural areas. This has caused a surge in demand for homes in these areas, which has driven up prices.
The lack of inventory has also contributed to the housing market slump. Many people who were planning to sell their homes decided to delay listing them due to the pandemic. This has resulted in a shortage of available homes, which has driven up prices.
In conclusion, while the recent report by the National Association of Realtors shows that U.S. existing home sales continue to fall, the pace of decline has slowed down, and there are signs of cautious optimism that the housing market slump could be close to reaching a bottom. However, it will take some time before the market turns around, and the recent increase in mortgage rates could deter potential home buyers. Nonetheless, the smallest increase in annual house prices since 2012 is a positive sign for buyers, as it means that they may be able to find a home within their budget.
Should You Wait Longer to Buy a House for Lower Prices?
Deciding whether to buy a house now or wait longer is a big decision that requires careful consideration of a variety of factors. One of the key factors to consider is the state of the housing market and whether prices are likely to fall further.
If you are thinking about buying a house, it’s important to keep in mind that housing prices can be volatile and are affected by a wide range of factors, including interest rates, economic growth, and the supply and demand of homes. According to a report by the National Association of Realtors, U.S. existing home sales fell to the lowest level in more than 12 years in January, and this trend may continue.
There are several reasons why you might want to wait longer before buying a house. One of the main reasons is that if housing prices fall further, you could end up with a better deal. However, predicting future price movements is notoriously difficult, and there is no guarantee that prices will fall further.
Another reason to wait is if you are not yet financially prepared to buy a house. Buying a house is a significant financial commitment that requires a substantial down payment and ongoing expenses such as mortgage payments, property taxes, and maintenance costs. If you are not yet in a stable financial position, it may be better to wait until you have a more secure source of income and have saved up enough money for a down payment.
On the other hand, there are several reasons why you might want to buy a house now, despite the current state of the housing market. One reason is that interest rates are still relatively low compared to very long-term rates, which means that you can get a mortgage at a more affordable rate than if rates continue to go higher, as seen in the 1980’s.
Another reason to buy now is if you have found a house that meets your needs and fits your budget. Finding the right house can be a long and difficult process, and there is no guarantee that the same house will be available in the future or that you will be able to find another one that meets your needs.
Ultimately, the decision to buy a house now or wait longer depends on your individual circumstances and long term goals.