News & Commentary: Market Pulse Articles
Pent-up buyer demand may lift the market soon, but for now interest rates and lending standards are holding down home sales as the year winds to a close.
Interest rate hikes and rising home prices are taking a toll on sales.
REALTORS® are seeing strong buyer demand against low, but slightly improving, inventory levels, continued price increases, and fewer days on market. But there are growing concerns in the industry and among consumers about rapid price gains
and rising interest rates.
Home sales have been hovering at the 4.9 million sales-pace mark since fall of last year and aren’t likely to move up much unless more inventory comes onto the market.
Home sales are improving, but NAR analysts say the market would see at least a half-million more sales a year if lenders would return credit conditions to historically normal standards.
Sales and prices are up and the length of time it takes to complete sales is down, but real estate isn’t out of the woods yet.
Existing-home sales dipped in May from the previous month to 4.55 million units, but sales remain above year-ago levels. Also, practitioner confidence in current and future housing market conditions is up from the previous month.
This is a seasonally adjusted annual rate, which is the actual rate of sales for the month, multiplied by 12 and adjusted for seasonal sales differences.