August showed a cooling trend in the housing market with diminished inventory levels being the primary driving force behind the decline.
Despite near rock-bottom mortgage rates and healthy job growth, home sales eased after reaching record-setting levels in June. Affordability concerns have delayed some first-time buyers, which could contribute to pent-up demand in the future.
Interest rates remain near all-time lows.
30-Year Fixed: 3.48%
15-Year Fixed: 2.76%
5/1-Year ARM: 2.80%
Historical Average: 8.90%
Mortgage rates have remained relatively flat, however, an increase has been hinted to be coming this December.
The National Association of REALTORS reported home sales at a seasonally adjusted annual rate of 5.33 million homes during August, a decrease of .9% from July and an .8% increase from August of last year.
The median home price decreased to $240,200 in August, which was down 1.3% from July and up 5.1% from August of last year. The median home price has increased by nearly $11,700 in the past year alone.
There was a 4.6-month supply of housing inventory in August, which was a 2.1% decrease from July. The total number of homes for sale decreased by 9.8% compared to August of last year.
If you are in the market to buy or sell a home, contact me. I look forward to working with you.
Brought to you by KW Research.