There are two ways of looking at today’s housing market. On the one hand, buying conditions are more challenging, as prices and mortgage rates continue to rise. On the other hand, the housing market looks like it’s starting to cool off, headed to a much calmer state. This is after an overheated year where the number of interested buyers far outpaced the supply of homes for sale.
A Calmer Housing Market to Follow
The National Association of Realtors most recent Pending Home Sales Index is evidence of this. The index shows the number of contracts to buy homes fell 1.2 percent in March, the fifth consecutive month of declining activity. Lawrence Yun, NAR’s chief economist, says declining buyer activity may help reduce competition and bidding wars, which would be welcome news for spring home shoppers. “The falling contract signings are implying that multiple offers will soon dissipate,” Yun said, “and a much calmer and normalized market should replace the current.” A calmer market would also help slow the rate of price increases, which could offset some of the effects of rising mortgage rates. Follow the link for more information.
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