{"id":6474,"date":"2022-08-14T21:44:04","date_gmt":"2022-08-15T01:44:04","guid":{"rendered":"https:\/\/dankrell.com\/blog\/?p=6474"},"modified":"2022-08-14T21:44:07","modified_gmt":"2022-08-15T01:44:07","slug":"the-changing-housing-market-is-still-viable","status":"publish","type":"post","link":"https:\/\/dankrell.com\/blog\/2022\/08\/14\/the-changing-housing-market-is-still-viable\/","title":{"rendered":"The changing housing market is still viable"},"content":{"rendered":"\n

There are a number of ways to determine a changing housing market.\u00a0 An obvious indicator of a changing housing market is a swelling home sale inventory.\u00a0 According to the National Association of Realtors July 20th<\/sup> press release<\/a>, \u201cinventory of unsold existing homes rose to 1.26 million by the end of June, or the equivalent of 3.0 months at the current monthly sales pace.\u201d \u00a0As a matter of comparison, home sale inventory rose 9.6 percent from the previous month, and 2.4 percent from the same time last year. <\/p>\n\n\n\n

\"changing
what experts are saying<\/figcaption><\/figure><\/div>\n\n\n\n

Another indicator of a changing housing market is remodeling activity.  Believe it or not, there is an index for\nthis.  The Leading Indicator of\nRemodeling Activity (LIRA) is a product of the Remodeling Futures Program at\nthe Joint Center for Housing Studies of Harvard University. The LIRA projects that\ninvestments in home remodeling will \u201cdecelerate\u201d from 2022\u2019s 17.4 percent to\n10.1 percent by the second quarter of 2023. <\/p>\n\n\n\n

In a July 19th<\/sup> press release<\/a>, Project Director of the Remodeling Futures Program at the Center, Carlos Mart\u00edn, stated: \u201cSlowing sales of existing homes, rising mortgage interest rates, and moderating house price appreciation are expected to dampen owners\u2019 investments in home improvements and maintenance over the coming year. Steep slowdowns in homebuilding, retail sales of building materials, and renovation permits all also point to a cooling environment for residential remodeling\u201d<\/p>\n\n\n\n

Although a changing market sounds ominous, it\u2019s still a viable market. Abbe\nWill, Associate Project Director of the Remodeling Futures Program, stated: \u201cWhile\nbeginning to soften, growth in spending for home improvements and repairs is\nexpected to remain well above the market\u2019s historical average of 5 percent. In\nthe first half of 2023, annual remodeling expenditures are still set to expand\nto nearly $450 billion.\u201d<\/p>\n\n\n\n

Other signs the market is still viable, is that first time home buyers are\nstill a large part of the market, and all-cash transactions continue to be a\nfactor as well.  As indicated in NAR\u2019s\npress release, first-time home buyers accounted for 30 percent of the home\nsales in June, which is an increase from May, but slightly down from the 31\npercent the same time last year. Additionally, buyers paying all cash accounted\nfor 25 percent of home sales, which is an increase from 23 percent the same\ntime last year. <\/p>\n\n\n\n

A final note on the health of the housing market, NAR reported that distressed, foreclosure and short sales accounted for less than 1 percent of home sales during June, which is basically unchanged from the previous year.<\/p>\n\n\n\n

By Dan Krell
Copyright \u00a9 2022 <\/p>\n\n\n\n

\"Protected<\/a><\/figure>\n\n\n\n

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

There are a number of ways to determine a changing housing market.\u00a0 An obvious indicator of a changing housing market is a swelling home sale inventory.\u00a0 According to the National Association of Realtors July 20th press release, \u201cinventory of unsold existing homes rose to 1.26 million by the end of June, or the equivalent of … <\/p>\n

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