{"id":6562,"date":"2022-12-06T15:45:11","date_gmt":"2022-12-06T20:45:11","guid":{"rendered":"https:\/\/dankrell.com\/blog\/?p=6562"},"modified":"2022-12-06T15:45:15","modified_gmt":"2022-12-06T20:45:15","slug":"whats-driving-the-housing-market","status":"publish","type":"post","link":"https:\/\/dankrell.com\/blog\/2022\/12\/06\/whats-driving-the-housing-market\/","title":{"rendered":"What’s driving the housing market?"},"content":{"rendered":"\n

The November 30th<\/sup> National Association of Realtors press release indicated that the Pending Home Sale Index receded 4.6 percent in October from the previous month. This is the fifth straight month of declines for the forward looking indicator. The index has declined about 37 percent from the same time last year. What is currently driving the housing market?<\/p>\n\n\n\n

\"
mortgage rates<\/figcaption><\/figure><\/div>\n\n\n\n

Many are blaming mortgage interest rates for the sharp\ndeclines. NAR Chief Economist Lawrence Yun stated, “October was a\ndifficult month for home buyers as they faced 20-year-high mortgage rates\u2026The\nupcoming months should see a return of buyers, as mortgage rates appear to have\nalready peaked and have been coming down since mid-November<\/em>.”<\/p>\n\n\n\n

Declining Existing home sales<\/h3>\n\n\n\n

As for existing home sale stats, the NAR\u2019s November 18th<\/sup>\npress release indicated that existing home sales declined for the ninth\nstraight month. Sales slipped 5.9 percent from the previous month, and dropped\n28.4 percent from the same time last year. <\/p>\n\n\n\n

Increasing home prices <\/h3>\n\n\n\n

Despite, the slipping sales, median home prices continue to\nincrease. The median existing home sale price increased 6.6% from the same time\nlast year. Although the hedge funds and main stream media talk about huge home\nprice declines in 2023, the reality is that most experts expect home prices to\nmaintain if not increase. If the housing market were really in trouble,\nexisting home sale prices would have already started to recede, but home sale\nprices actually increased! This is probably why the FHFA announced in a\nNovember 29th<\/sup> press release that conforming loan limits are\nincreasing in high price areas from $647,200 to $726,200.<\/p>\n\n\n\n

Inflation and the economy are on everyone\u2019s mind. Zillow chief economist Skylar Olsen stated in a December 1st<\/sup> press release that the economy and affordability will drive the housing market in 2023. “Affordability is going to be the biggest factor in housing for 2023, but there’s room for optimism on that front if mortgage rates recede<\/em>.”\u00a0<\/p>\n\n\n\n

Lack of home sale inventory is currently driving the housing market <\/strong><\/h3>\n\n\n\n

The reason for declining home sales and increasing home\nprices, that no one is really talking about, is the existing home sale\ninventory. The NAR reported that home sale inventory continues to decline. The\ncurrent level of inventory is equivalent to 3.3. month\u2019s supply, which is\nindicative of a sellers\u2019 market.<\/p>\n\n\n\n

On the surface, home sale stats may seem disastrous. However, keeping perspective, remember that the current housing market is being compared to the previous year of record setting home prices and sales. Also keep in mind that although home sales have slipped, home prices continue to increase<\/strong>. Mortgage rates seemed to have plateaued. However, unless existing home sale inventory increases significantly, expect subdued existing home sales and higher home sale prices. <\/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":"

The November 30th National Association of Realtors press release indicated that the Pending Home Sale Index receded 4.6 percent in October from the previous month. This is the fifth straight month of declines for the forward looking indicator. The index has declined about 37 percent from the same time last year. What is currently driving … <\/p>\n

Continue reading “What’s driving the housing market?”<\/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":[288,29,13,26],"tags":[466,807,797,593],"class_list":["post-6562","post","type-post","status-publish","format-standard","hentry","category-housing-market","category-market-conditions","category-real-estate","category-real-estate-market","tag-housing-market-2","tag-market-conditions","tag-real-estate","tag-real-estate-market-2"],"jetpack_publicize_connections":[],"jetpack_featured_media_url":"","jetpack_shortlink":"https:\/\/wp.me\/p1VZLf-1HQ","jetpack-related-posts":[],"jetpack_sharing_enabled":true,"jetpack_likes_enabled":true,"_links":{"self":[{"href":"https:\/\/dankrell.com\/blog\/wp-json\/wp\/v2\/posts\/6562","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=6562"}],"version-history":[{"count":6,"href":"https:\/\/dankrell.com\/blog\/wp-json\/wp\/v2\/posts\/6562\/revisions"}],"predecessor-version":[{"id":6569,"href":"https:\/\/dankrell.com\/blog\/wp-json\/wp\/v2\/posts\/6562\/revisions\/6569"}],"wp:attachment":[{"href":"https:\/\/dankrell.com\/blog\/wp-json\/wp\/v2\/media?parent=6562"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/dankrell.com\/blog\/wp-json\/wp\/v2\/categories?post=6562"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/dankrell.com\/blog\/wp-json\/wp\/v2\/tags?post=6562"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}