When it comes to real estate, it’s all about that golden rule: location, location, location.

Hey there, realtors, real estate agents, loan officers, home buyers, and sellers! It’s Larry Gonzales, back with your latest housing market update for the week of July 20th. Grab your sunglasses because we’re heating things up in the real estate world, and I’ve got some great news to share.

Headlines News: We’re right in the middle of Independence Day month, and as temperatures soar across the country, the housing market is sizzling too! Just remember, folks, when it comes to real estate, it’s all about that golden rule: location, location, location.

Let’s dive into the details and get this party started!

Residential Construction: June 2023

Now, before we break out the sunblock, let’s take a look at the recent residential construction report for June. It appears that the market had a bit of a cooldown this month, likely due to rising mortgage rates and some not-so-great weather. Although there was a decrease in completions and starts, home builders remain optimistic overall.

NAHB Housing Market Index

Speaking of optimism, our home builders are on cloud nine! For six months in a row, they’ve seen an increase in their market index. Anything above 50 on this index indicates expansion, and boy, are they positive right now! Current sales, future sales expectations, and buyer traffic are all on the rise. Why, you ask? Well, let me tell you, it’s because the existing home sales market can’t keep up with the demand.

Summer Peak In Inventory

Folks, brace yourselves; this is big news. Existing home sales are currently at historic lows. When we compare the current inventory to the housing bubble of 2008, it’s jaw-dropping. Back then, we had a whopping 4 million homes on the market. Today, we’re down to just 1.4 million! With homeowners holding onto their properties, there’s simply not enough supply to meet the soaring demand.

VA 30 Years Rate

Now, let’s talk rates. They’ve had a wild ride through June and July, but they’re currently hovering around 6.5%. Steady as she goes, I say. We expect them to stay in the 6% to 7% range until we see a significant inflation report. So, homebuyers, it might be time to make your move while the rates are still relatively low!

Summary

To sum it up, prices are steady, inventory is tight, and rates are holding firm. Builders are excited, and buyers are coming in droves due to the scarcity of existing homes. If you’re thinking of selling, low inventory works in your favor, keeping us squarely in a seller’s market. And buyers, listen up: the elevator is going up! Home prices won’t stay this low forever, so don’t wait too long.

Aloha! As the sun sets on this housing market update, I hope you’re feeling informed and ready to tackle the real estate world with a smile on your face. Remember, it’s a pay-me-now-or-pay-me-later scenario, so if homeownership is in your future, seize the opportunity now. If you have any questions or need guidance, reach out to me, and I’ll be more than happy to assist you. Stay cool and have a fantastic weekend, everyone!

Aloha!