REALTOR Magazine reports:
The National Association of REALTORS®’ latest housing report shows housing inventories are increasing, by 7.3% in July compared to June. A greater number of homes for sale will lessen the intensity of multiple offers, said Lawrence Yun, NAR’s chief economist, in regard to the latest home sales numbers.
“We’re seeing the gap narrowing between demand and supply,” Gay Cororaton, NAR’s director of housing and commercial research, told realtor.com®. “There’s still a huge, huge gap.”
Buyers continue to purchase homes for sale at a frantic pace. Eighty-nine percent of homes sold in July were on the market for less than a month, according to NAR’s data.
Buyer demand likely will remain strong, especially as mortgage rates stay near record lows. “The fear of missing out on what could be a once-in-a-lifetime deal will likely entice additional buyers,” realtor.com® reported. The 30-year fixed-rate mortgage averaged 2.86% last week, according to Freddie Mac.
Home buyers likely will still face intense competition. “Don’t expect deals in the fall if you are house hunting in the most desirable part of a market or competing for a particularly nice house,” Ali Wolf, chief economist at Zonda, a building consulting firm, told realtor.com®. “Homes that stand out for one reason or another are still flying off the shelf.”