Existing-Home Prices Hit New Record as Sales Slow

This story comes from https://magazine.realtor/ and is painting a totally different picture than the media is painting.

" Prices for existing homes climbed to a record high in June, continuing at a breakneck pace with double-digit-percentage annual increases. The median price for an existing home rose to $416,000 last month, up 13.4% compared to a year earlier, the National Association of REALTORS® reported Wednesday"

Housing is not all based on the economy and interest rates. There is low inventory and new home builds are tumbling creating even more inventory issues. We are seeing that in the Cleveland metro area especially in rental properties.

" Still, not all buyers are backing away. More homes are coming on the market, and buyers who can afford the higher prices have more choices and are snatching them up quickly. Existing homes sold at a record-setting pace in June, NAR’s data shows. “Finally, there are more homes on the market,” Yun says. “Interestingly, though, the record-low pace of days on market implies a fuzzier picture on home prices. Homes priced right are selling very quickly, but homes priced too high are deterring prospective buyers.”"

Homes that are not over priced sell quickly. In Cleveland there are more properties coming off the market than coming on the market. So it is a sellers market priced correctly.

" Northeast: Existing-home sales held steady and reached an annual rate of 670,000. Sales, however, were down 11.8% from June 2021. Median price: $453,300, a 10.1% jump from one year ago."

Sales were down because of the inventory and the initial shock on the rate increases. Please notice that the median priced homes still jumped 10.1% in price.

There are a lot of wholesalers and news media that are saying the real estate market will end and prices will drop.......simply not true.

It only happened one time in the 1970's and there were a lot of bad mortgages being made at the time which made lenders pull back on backing mortgages. The mortgages today are far harder to get than they where in 2008-2009.

" Still, not all buyers are backing away. More homes are coming on the market, and buyers who can afford the higher prices have more choices and are snatching them up quickly. Existing homes sold at a record-setting pace in June, NAR’s data shows. “Finally, there are more homes on the market,” Yun says. “Interestingly, though, the record-low pace of days on market implies a fuzzier picture on home prices. Homes priced right are selling very quickly, but homes priced too high are deterring prospective buyers.”"

I was talking to a top agent in Cleveland this morning and they are noticing more buyers than sellers in the market all the sudden. Might be because they feel they can finally get some real estate. 

"Distressed sales: Foreclosures and short sales continued to make up a very small percentage of home sales—less than 1%, unchanged from June 2021"

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