Housing Marking Updates
Rob Breese, VP General Sales Manager
RE/MAX 200 Realty | RE/MAX Town & Country Realty
When talking to clients this week, here is what they need to know:
- We’re seeing positive inflection points in much of the January housing market data (an inflection point is a change in the market positive or negative.)
- After 12 consecutive months of decreases, the National Home Builder’s Association’s home buyer index displays an increase in January.
- The Mortgage Broker Association weekly index shows mortgage applications increasing 28% so far in January … WOW!
- New construction starts rose 11% in December, and appear to be bottoming out in January after a tough 2022.
- MBS Highway housing survey for January is showing early signs of improving buyer activity, particularly at REALTOR® open houses.
- Fannie Mae’s home purchase index shows for the first time in awhile that consumers believe that it’s a good time to buy.
- Interest rates have fallen 1.3% below their October 2022 peaks, driving an uptick in purchase activity. Mortgage rates are now at their lowest level since September of 2022.
- National Association of Home Builder’s projects a housing deficit of 1.5 million homes. Clearly, demand is exceeding supply, but there are more homes for buyers to choose from than 2022. It’s still going to be a seller’s market for quite some time.
- Easing inflation numbers and more economists suggesting we are now in a mild recession, equals a perfect combination for stronger bond prices and lower bond yields; which could mean lower mortgage rates and point to the FED declaring their inflation reduction mission is complete. The consensus of economists currently expects a lower 25 basis points hike at the January 31st FED meetings.
All in all, it appears that things are improving. However, to have a great year, we must educate our past clients and SOI to counter the headlines in housing that continue to spread doom and gloom. The news media is doing more to terrify than clarify the good news, and the result is buyers and sellers are putting their home ownership goals on pause.
We must spread the good word that opportunities do exist for buyers and sellers out there even in today’s challenging market.