Home News I’m the chief economist at Realtor.com. These are the 4 things you need to know about the housing market now

I’m the chief economist at Realtor.com. These are the 4 things you need to know about the housing market now

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Daniel Hale

If you now hear different views of the housing market and feel a little whiplash, you are not alone. House prices are still rising, but not so much. Mortgage rates are generally rising, but have recently fallen below 6%. ((((Look at the lowest mortgage rates you can get here right now.. ) There are many bidding wars, but not everywhere. That’s why MarketWatch Picks created it. series Here, we ask prominent economists and real estate professionals to tackle the current housing market.

This week we’re talking to Danielle Hale, Chief Economist at Realtor.com for the past five years. She is responsible for developing real estate trend data and translating it into consumer and industry insights. Prior to that, she worked for the National Association of Real Estate Agents (NAR) as an economist for nearly a decade. Given the current real estate market, she asked her to share five things that homebuyers should know. (Realtor.com is owned by the same parent company as MarketWatch.)

“Housing inventories have made the biggest face ever”, but we still run out of homes

Home inventories have improved since last year, but compared to normal pre-pandemic conditions, today’s market still lacks options for homebuyers. “Housing inventories were the largest in history in a year, up 18.7% compared to this time last year,” said Hale, according to the June Housing Trends Report.

One-seventh of the homes on the market have been reduced in price

House prices are still rising at a faster pace than usual, according to Hale, but sellers’ price cuts are more common this year than last year, despite lagging behind pre-pandemic levels. “Approximately one-seventh of June homes are down from about one-thirteenth of June 2021, but below the typical four-fifths of 2017-2019. , The domestic market has been reset, and the region you are trying to buy may be at the forefront or behind these trends, “says Hale. Look at the lowest mortgage rates you can get here right now..

Please be aware of the local situation

“The region you’re trying to buy may be more or less buyer-friendly than the country data shows,” says Hale. According to Hale, potential homebuyers need to follow the data to know what’s happening in the home market and may want to work with realtors and professionals to help find the right home. Hmm. “It helps them set more realistic expectations and, in some respects, keep up with trends that are evolving in a more favorable way for buyers,” says Hale.

Make sure you are financially ready to buy

With the housing market ready for a reset and economic uncertainty ahead, it’s more important than ever to make sure you’re financially ready when buying a home. .. “Before you start shopping, take a good look at your budget and make sure your monthly home spending is okay. Mortgage calculators and lenders will pay your total debt, including mortgages and cars. We advise you on the basis of financial rules that suggest that you should spend less than 28% of your income. Loans, “says Hale. Keep in mind that these are just general rules and your personal situation may mean that you can afford more or less than usual.

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