{"id":3637,"date":"2018-08-02T08:13:25","date_gmt":"2018-08-02T12:13:25","guid":{"rendered":"http:\/\/dankrell.com\/blog\/?p=3637"},"modified":"2019-07-23T06:47:32","modified_gmt":"2019-07-23T10:47:32","slug":"home-buyer-fatigue","status":"publish","type":"post","link":"https:\/\/dankrell.com\/blog\/2018\/08\/02\/home-buyer-fatigue\/","title":{"rendered":"Home buyer fatigue"},"content":{"rendered":"\n

Home Buyer Fatigue or Housing Derangement Syndrome?<\/h1>\n\n\n\n
\"home<\/a>
June Housing Stats (infographic from nar.realtor)<\/figcaption><\/figure><\/div>\n\n\n\n

Although home prices remain strong, the volume of home sales has dropped off during June.  This is causing some in the media to exhibit \u201chousing derangement syndrome\u201d by reporting a pending housing collapse.   However, there is a more sensible answer and that may be \u201chome buyer fatigue.\u201d  Buyer fatigue is not solely used in real estate, rather it\u2019s a term to describe consumers who do not engage in a market sector for a short duration for various reasons.  Home buyer fatigue has occurred multiple times since 2013<\/a> after a period of sustained home price increases.<\/p>\n\n\n\n

Let\u2019s look at the facts.<\/h3>\n\n\n\n

The National Association Realtors (nar.realtor) reported in a July 23<\/a>rd<\/a><\/sup> press release<\/a> that the total existing home sales for June decreased 0.6 percent, and is down 2.2 percent from the same time last year.  Home sales in Montgomery County have also been retreating.  The Greater Capital Area Association of Realtors (gcaar.com) reported sales declines for single-family<\/a> and condos <\/a>during June (-3.4 percent and -13.9 percent respectively).  Year-to-date sales are also below last year\u2019s transactions for the same time period.<\/p>\n\n\n\n

NAR chief economist Lawrence Yun observed:<\/a><\/p>\n\n\n\n

“There continues to be a mismatch since the spring between the growing level of homebuyer demand in most of the country in relation to the actual pace of home sales, which are declining.<\/em>\u201d<\/p><\/blockquote>\n\n\n\n

However, his explanation for the home sales retreat sounds like home buyer fatigue:<\/p>\n\n\n\n

“The root cause is without a doubt the severe housing shortage that is not releasing its grip on the nation\u2019s housing market. What is for sale in most areas is going under contract very fast and in many cases, has multiple offers. This dynamic is keeping home price growth elevated, pricing out would-be buyers and ultimately slowing sales<\/em>.\u201d<\/p><\/blockquote>\n\n\n\n

Although national home prices are increasing, the gains remain steady.  The latest S&P CoreLogic Case-Shiller U.S. National Home Price NSA Index <\/a>reported on July 31st<\/sup> (spice-indices.com) indicated a 6.4 percent annual gain during May, which is the same as the previous month.  However, the 20 City Index showed a slight decline to 6.5 percent (from 6.7 percent).  Seattle, Las Vegas and San Francisco continue to lead the nation with double digit gains (13.6, 12.6 and 10.9 percent respectively). The Washington DC region, however, showed a modest annual home price growth of 3.06 percent.<\/p>\n\n\n\n

As home sales decline, many contribute home buyer fatigue to increasing home prices and mortgage interest rates<\/a>.  A few have already begun to ring the warning bells of bubble popping home price deflation citing Seattle and San Francisco\u2019s housing woes.<\/p>\n\n\n\n

However, those exhibiting housing derangement syndrome need to take a deep breath and look at the facts.  Most of the country\u2019s home values are increasing at a sustainable rate.  Additionally, contrary to reports of inventory surpluses, home sale inventory continues to be low in most of the country (Montgomery County single-family and condo listings are below last year\u2019s level by -9.3 and -12.8 percent respectively).<\/p>\n\n\n\n

It\u2019s also important to look deeper into what may be driving those overheated housing markets to experience the sharp price spikes and recent sale declines.  For example, Seattle\u2019s housing juggernaut may be tied to Amazon\u2019s nine years of a seemingly hiring frenzy.  According to reporting by Matt Day for The Seattle Times (Amazon\u2019s employee count declines for first time since 2009<\/em>; seattletimes.com; April 26, 2018), Amazon begun corporate layoffs, as well as a possible hiring freeze, earlier this year.<\/p>\n\n\n\n

By Dan Krell.
Copyright \u00a9 2018.<\/p>\n\n\n\n

Original published at https:\/\/dankrell.com\/blog\/2018\/08\/02\/home-buyer-fatigue\/<\/p>\n\n\n\n

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Disclaimer<\/a>. This article is not intended to provide nor should it be relied upon for legal and financial advice. Readers should not rely solely on the information contained herein, as it does not purport to be comprehensive or render specific advice. Readers should consult with an attorney regarding local real estate laws and customs as they vary by state and jurisdiction. Using this article without permission is a violation of copyright laws.<\/p>\n","protected":false},"excerpt":{"rendered":"

Home Buyer Fatigue or Housing Derangement Syndrome? Although home prices remain strong, the volume of home sales has dropped off during June.  This is causing some in the media to exhibit \u201chousing derangement syndrome\u201d by reporting a pending housing collapse.   However, there is a more sensible answer and that may be \u201chome buyer fatigue.\u201d  Buyer … <\/p>\n

Continue reading “Home buyer fatigue”<\/span><\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":true,"jetpack_social_options":{"image_generator_settings":{"template":"highway","default_image_id":0,"font":"","enabled":false},"version":2}},"categories":[270,160,469,139,405,288,13,26],"tags":[490,879,936,870,466,797,593],"class_list":["post-3637","post","type-post","status-publish","format-standard","hentry","category-home-buyer","category-home-buyer-behavior","category-home-prices","category-home-sales","category-homebuyer","category-housing-market","category-real-estate","category-real-estate-market","tag-home-buyer-2","tag-home-buyer-behavior","tag-home-prices","tag-home-sales","tag-housing-market-2","tag-real-estate","tag-real-estate-market-2"],"jetpack_publicize_connections":[],"jetpack_featured_media_url":"","jetpack_shortlink":"https:\/\/wp.me\/p1VZLf-WF","jetpack-related-posts":[],"jetpack_sharing_enabled":true,"jetpack_likes_enabled":true,"_links":{"self":[{"href":"https:\/\/dankrell.com\/blog\/wp-json\/wp\/v2\/posts\/3637","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/dankrell.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/dankrell.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/dankrell.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/dankrell.com\/blog\/wp-json\/wp\/v2\/comments?post=3637"}],"version-history":[{"count":8,"href":"https:\/\/dankrell.com\/blog\/wp-json\/wp\/v2\/posts\/3637\/revisions"}],"predecessor-version":[{"id":5357,"href":"https:\/\/dankrell.com\/blog\/wp-json\/wp\/v2\/posts\/3637\/revisions\/5357"}],"wp:attachment":[{"href":"https:\/\/dankrell.com\/blog\/wp-json\/wp\/v2\/media?parent=3637"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/dankrell.com\/blog\/wp-json\/wp\/v2\/categories?post=3637"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/dankrell.com\/blog\/wp-json\/wp\/v2\/tags?post=3637"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}