Home prices have continued to rise despite higher mortgage rates and an increase in housing supply, factors that typically put downward pressure on home prices. However, the numbers still show the market is quite resilient and costly.What Is The Real Estate Market Doing Nationally

The median home sales price has jumped every month this year, reaching a record high in June before falling slightly in July, according to the National Association of Realtors (NAR). Some housing experts say that a slight drop is seasonal as the housing market tends to slow down in the fall. Still, the existing-home sales price in July was higher than a year ago. Such higher housing costs have taken a toll on home shoppers as mortgage applications are at their lowest level in 22 years, according to the Mortgage Bankers Association (MBA).

The current change in the housing market is partly due to the economy at large and consumer sentiment. Right now, the economy is on shifting sands, on one hand, there are signs of a weakening economy as the gross domestic product has declined for two consecutive quarters, which some economists say indicates a recession. While on the other hand, the job market and consumer spending are still strong.

Will Home Prices Continue to Rise?

Inflation, high mortgage rates, and record-high home prices are chipping away at housing affordability. A typical monthly mortgage payment is higher today than it was in June 2019. Earnings aren’t keeping up with the inflated costs. Home prices might expand, but the options will, too, according to some economists.

The typical home spent 42 days on the market this August which is five days more than last year and the first month that time on the market increased since June 2020, during the early days of the pandemic. While new listing activity has declined, the inventory of homes for sale continues to increase as homes spend slightly longer on the market compared to last year. Nonetheless, homes still spent 22 fewer days on the market this August than in typical 2017 to 2019 timing.

In the 50 largest U.S. metros, the typical home spent 37 days on the market, five days more than last August. Time on the market increased similarly across regions, with larger metros in the West seeing the greatest increase (+7 days), followed by the South and Midwest (+4 days) and the Northeast (+3 days).

Trying to time the market or predict what might happen next year is not the best homebuying strategy. Instead, it’s better to buy based on your budget and needs. If you find a home you love in an area you love and it also fits your budget, then chances are it might be right for you. However, if you make too many sacrifices just to get a house, you may end up with buyer’s remorse and an expensive choice you have to offload.

 Start Your Southwest Florida Real Estate Search Now!

For more information on trends in the upcoming year or local home information, check out our website. Contact me for all Palm Beach Gardens homes and Jupiter real estate.