Press release
Realtor.com® Predicts Market Shift That Could Impact Buyers Well Into 2020
SANTA CLARA, Calif., July 9, 2019 /PRNewswire/ -- The housing market is posed for a shift that could affect buyers well into 2020 -- the resurgence of
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[{"type":"text","content":" SANTA CLARA, Calif., July 9, 2019 /PRNewswire/ -- The housing market is posed for a shift that could affect buyers well into 2020 -- the resurgence of national inventory declines. According to realtor.com®'s July 2019 Monthly Housing Trend report released today, in just a few months* buyers may begin to see a drop in the number of homes for sale that could lead to the return of bidding wars, stronger price appreciation and quicker home sales.\nContinuing its unabated record growth, the U.S. median listing price in June reached its likely high point for the year at $316,000, earlier than its usual July peak due to the mismatch of what's available and what buyers want. \nNationally, housing inventory grew 2.8 percent year-over-year, an addition of approximately 40,000 listings, down from May's 2.9 percent growth. The slowing of inventory gains first appeared in 2019 with a decline from 6.4 percent growth in January to 5.8 percent in February. It continued throughout the spring with 4.4 percent growth in both March and April, 2.9 percent in May and now 2.8 percent in June. If this trend continues, inventory growth will flatten over the next three months and could hit its first decline in October 2019.\n\"It was only 18 months ago that the number of homes for sale hit its lowest level in recorded history and sparked the fiercest competition among buyers we've ever seen. If the trend we're seeing continues, overall inventory could near record lows by early next year,\" said Danielle Hale, chief economist for realtor.com®. \"So far there's been a lackluster response to low mortgage rates, but if they do spark fresh buyer interest later in the year, U.S. inventory could set new record lows.\"\nPart of this slowdown can be attributed to the fact that newly listed homes have either declined or reported meager growth in 2019, such as June's 2.3 percent yearly decrease. According to Hale, the reason why people aren't putting their homes on the market is more difficult to determine. \"It's likely a combination of rate-lock, recently decreased consumer confidence and older generations choosing to age in place,\" she added.\nOnly seven years ago, 30 year fixed mortgage rates reached their lowest point at 3.3 percent since Freddie Mac began tracking this data, which prompted many homeowners to refinance. Although rates are still low, they're ...