Real Estate Market Reaches Equilibrium between Buyers and Sellers
Below is a MRR and PLR article in category Finance -> subcategory Real Estate.
Real Estate Market Achieves Balance Between Buyers and Sellers
Summary:
The U.S. housing market is experiencing a rare balance between buyers and sellers, a first in eight years, with exceptions in the Northeast, Western states, and Chicago metro area.Overview:
The Current Market Conditions survey conducted three months ago indicated a balance between buyer demand and seller supply in the U.S. housing market, a phenomenon not seen in eight years. The latest quarterly survey confirms this equilibrium: 41% of real estate agents observed more buyers than sellers, 40% saw more sellers than buyers, and 19% reported an even split.Regional Variations:
Notable exceptions exist in certain areas. Homebuyers significantly outnumber sellers in the Chicago metro area and the Western states, while sellers outpace buyers in the Northeast.National Statistics:
The National Association of Realtors reported a 6.5-month supply of unsold homes in May, signaling a balanced market. Typically, an inventory supply of 5.5 to 6.0 months is considered balanced.Key Findings:
- Market Timing: 56% of real estate agents state it now takes over 60 days to sell a home from listing to contract, up from 55% in the first quarter and 35% last year. Additionally, 28% report this process takes over 90 days, with only 15% of homes selling in 30 days or fewer.- Inventory Levels: Home availability is increasing, with 86% of agents reporting a good supply across price ranges, up from 81% in the first quarter and 38% last year.
- Home Price Changes: Annual home price appreciation has slowed to 5% or less according to 66% of agents, down from last year’s 8-10%. Home prices appreciating more than 10% are now 16% on average.
- Asking Price Realization: The percentage of sellers receiving 95% or more of their asking price has decreased to 68%, down from 90% a year ago.
- Multiple Offers: Multiple offers received by home sellers are significantly lower, currently at 32%, compared to 39% in the first quarter and 70% last year.
- First-Time Buyers: These buyers account for one-third of home sales nationwide, despite rising mortgage and interest rates having minimal negative effects on them, except for marginal buyers.
Industry Insights:
Michael Bearden, President and CEO of HouseHunt, Inc., welcomes this balanced market, emphasizing that unsustainable double-digit price appreciation could deter entry-level buyers.Second Quarter Regional Results:
- More Buyers: Nationwide 41%, South 40%, Midwest 49%, Northeast 30%, West 47%, California 39%, Chicago 50%.- More Sellers: Nationwide 40%, South 44%, Midwest 30%, Northeast 50%, West 34%, California 41%, Chicago 19%.
- Balanced (50-50): Nationwide 19%, South 16%, Midwest 21%, Northeast 20%, West 19%, California 20%, Chicago 31%.
This equilibrium in the real estate market offers a stable and orderly environment for both consumers and professionals. The survey suggests continuous monitoring and adjustments as regional disparities might still impact specific areas differently.
Note: California data is included in both the U.S. and West results; Chicago Metro data is part of U.S. and Midwest results.
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