This morning the National Association of Realtors (NAR) reported that existing home sales (completed transactions for single-family homes, town homes, condominiums and co-ops) declined 1.7% in June to a seasonally adjusted annual rate of 5.27 million. Expectations were for a lesser decline. Offsetting June's reading, May's reading was revised up to 5.36 million units from 5.34 million units. With today's numbers, existing home sales are down 2.2% from the same time last year.
Lawrence Yun, NAR chief economist, noted that despite "exceptionally low mortgage rates, a record number of jobs and a record high net worth in the country," a lack of supply continues to hold back sales, and added that "imbalance persists for mid-to-lower priced homes with solid demand and insufficient supply, which is consequently pushing up home prices."
John Smaby, NAR President, was in agreement that the lower rates should support a bottoming in the housing market, noting that, "historically, these rates are incredibly attractive," adding that "securing and locking in on a mortgage now -- given the current, favorable conditions -- is a decision that will pay off for years to come."
What do we take from this information on housing? Well, in our opinion, with a shortage in inventory, given the current demand for housing, it is probably a great time to put your house on the market if you want to sell it.
On the other hand, if you are looking to buy a home, with low mortgage rates and what seems to be a bottoming housing market, it's a great time to buy that house you've been dreaming of!
No matter what side of the market you're in, you're a winner!
Sellers and Buyers Act Now!!