Is there light at the end of the tunnel for the housing market?
Recent data has pointed to a slowdown in home sales and continued interest rate hikes have helped mortgage rates tick upward. However, there is reason to be positive about the where the housing market is heading.
The team at Mortgage News Daily did a deep dive into the current market, and compared it to the crash in 2008. These two markets are not even close to similar. Despite the higher costs of single-family homes, we’re not in a housing bubble. The key takeaway from Mortgage News Daily was, “Bottom line: things aren’t great, but at least this time around, the light at the end of the tunnel is actually connected to a brighter future as opposed to an oncoming train.”
Inventory & rates are a challenge, but how about price?
While there isn’t a ton of good news on the housing inventory or mortgage rate fronts, housing prices are starting to slow. The median housing price in January was $359,000, up only 1.3% from a year earlier. This is the smallest annual gain since February 2012.
National Association of Realtors chief economist Lawrence Yun had additional good news for home buyers when he said, “Homes sitting on the market for more than 60 days can be purchased for around 10% less than the original list price.”
The pace of home prices slowing and potential discounts on properties that sit on the market could be a positive sign for homebuyers looking to jump back into the market in the Spring.
How is the luxury housing market faring in the current environment?
While single-family homes for middle class buyers have been a challenge, the luxury real estate market, especially in Manhattan, is doing very well right now.
In fact, the luxury real estate market in Manhattan posted its best week since May 2022 this past week. 31 properties in center of New York City sold for over $4 million, and total sales volume for the week was $272.2 million. The most expensive property sold? A 27th floor unit at Hampshire House on Central Park South is believed to have sold for $30 million. It was only on the market for two weeks before finding a buyer.
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