Is available home inventory continuing to grow?
The latest weekly housing market report from Altos Research is out, and it shows that home inventory levels actually grew by a bout 14,000 units this past week, but that’s actually fewer than their statistical models predicted.
The home inventory levels has continued to grow into the summer, and currently sits at about 634,000 available units. This is over 200,000 units more than the same time last year, but still far below pre-pandemic levels.
The concern is that growth in inventory is starting to slow, and that may be a signal that sellers are starting to move to the sidelines. This past week still saw 13% more sellers entering the market than the same time last year, but it’s not expanding at the pace that would indicate continued growth in the housing market.
When it comes to the median price of home sales, contracts in the U.S. were at $395,000 last week. That’s down slightly from peak in late April/early May. It’s also up about 3% year-over-year, but it appears that we’ve seen the peak of the market this year, and we should start seeing cooling into the fall and winter months. This is a much earlier peak than year’s past, so it could indicate a steeper cooling off trend.
Is it more affordable to buy in the city or suburbs?
The team at Realtor.com crunched the numbers and attempted to answer the question of, “is it cheaper to live in the suburbs or country than a city?”
The results are that it depends on the city and suburb or countryside area.
Hannah Jones, an economic analyst with Realtor.com, stated, “Though buying in the suburbs may translate to savings on housing, it is important to consider the whole picture if you are hoping to make a money-saving move. Depending on where you live, moving to the suburbs may or may not be the more affordable choice.”
Generally speaking, the biggest metro areas in the country are more expensive than the surrounding suburbs, but there are some outlying areas that can end up costing more than their downtown counterparts. According to recent data, suburban homes in 65 of the top 100 largest metro areas are more expensive than urban homes.
Jones also highlighted other costs that may not be a part of a mortgage payment. Jones said, “Many large cities offer efficient public transportation,” Jones points out. “The cost of commuting, whether via public transit or car, can be quite pricey and should be considered when evaluating a move to the suburbs.”
Which markets could be the hottest in the next 5 years?
A recent article posted at Yahoo! Finance detailed what experts believe could end up as the hottest real estate markets in the U.S. over the next five years.
They ranked metro areas for economic growth, crime and safety, affordability, education, and climate, and came away with a clear winner.
Riverside, CA may be the best metro area in the country to buy into in the next five years. According to Joe Stance, a broker and founder of Stance Commercial Real Estate, said, “Riverside is poised for sustained growth. The city’s dedication to arts, innovation and new business development makes it a prime location for both residential and commercial investments.”
Riverside scored well for climate, safety, and the potential for growth. It is also driving distance to several major metro areas in the region, but offers more of a small town feel.
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