The Buzz is a regular summary of housing market news and data driving our decision-making at BlueBid.
Here's the Buzz for the week of April 18, 2024…
Realtor.com's recent survey shows signs of a softening market as sellers enter the spring with “more realistic” expectations. Fewer homeowners are expecting bidding wars and more are expecting their homes to sit on the market longer.
Newsweek says a mortgage rates spike could upend the housing market. The rise in mortgage rates comes as home inventory normally increases. The higher rates could have an early chilling effect on the market. The median monthly U.S. housing payment hit an all-time high of $2,747 during the four weeks ending April 7, up 11 percent from a year earlier.
Investopedia details mortgage trends over the last 90 days and shows the average creeping up to 7.60% as of Monday. A chart since June 2021 is also available, and it's painful.
While the Realtor survey predicts a softening market, Redfin observes prices increasing. The median U.S. home-sale price increased 5% from a year earlier during the four weeks ending April 14, bringing it to $380,250 – just $3,095 shy of June 2022’s all-time high.
Morningstar reports that new-home construction posted its biggest drop in 4 years, despite America facing a housing shortage. Construction of new homes fell 14.7% in March, as home builders scaled back new projects. Outside of the pandemic, housing starts fell by the most since February 2015.
Have a great week.
Disclaimer: Views expressed here are my own and not the views of my coworkers or anyone else. I am not a financial advisor, investment advisor, or housing expert. I’m just a guy who cares deeply about saving the American Dream of homeownership.