After the housing market struggled to make a comeback after the Recession, the supply of homes for sale and new homes for sale available in the real estate market has continued to decline. Because of this the supply of homes and new homes available to buy has decreased to a crucial point. That is that there is now more demand for homes to buy than there are homes and new homes on the market for sale.
Because of the lopsided nature of supply and demand in real estate, home prices have not only continued to increase, but they are still increasing at a rapid pace. According to Core Logic, a real estate analysis company which tracks housing trends nationwide, the price of homes for sale increased by 6.8% in June, 2018, compared to June, 2017. May, 2014 was the last time that housing prices had such a high year-over-year percentage increase, which was during one of the fast-paced recovery years of real estate after the Recession.
The price of homes continuing to go up is unsustainable as mortgage rates are also on the rise, putting the cost of the monthly note out of reach for some home buyers. However, as long as demand continues to outpace supply, the prices will continue to have a “seller’s market” mentality for home buyers who are able to qualify for loans.
Another factor in the increase in home prices is that prices are now double that of the growth of individual’s growth in salary. However, there are signs that home prices will start to see a slow down as the S&P/Case-Shiller 20-city index had less growth during May, 2018 than May, 2017. There are also other trends that show an overall economic slowdown that have probably not translated to the real estate housing market just yet.
What you can take away from this news is that if you have a home to sell and are wanting to buy a new home or a home for sale, you will want to make sure you are able to move quickly on buying a home and actually moving out since it truly is a seller’s market out there. If you are buying a home in the St. Tammany Parish area, Contact Ron Lee Homes about our Homes for Sale or to build the home of your dreams in Mandeville, Madisonville, Covington, Abita Springs, or Folsom! Call 985-626-7619 or email Info@RonLeeHomes.com.