The missing summer market
While mortgage rates continue to linger around 7%, where they’ve been for a few months now, home prices actually rose year-over-year in the most recent data from July. The uptick was lower than averages over the last 25-years. Inventory also grew slightly, as more homeowners listed their properties, showing that the buyer/seller standoff may be easing somewhat.
These price shifts can be read two ways: big-picture, the small increase as compared to historical averages could indicate a continued year-over-year slowdown in prices, but the monthly jump could suggest that the slowdown is over. Indicators over the next few months, including inflation data and rate movements from the Fed, could indicate where things head over the next 6-months.
Summer is typically a prime, competitive homebuying season where inventory would be expected to decrease, but this year bucked the trend. While the outlook for fall remains uncertain, buyers should stay the course, and continue to look for signs of increasing inventory. With high rates a reality of the market that’s unlikely to change greatly in the near future, increased inventory could make buying more appealing with more choices and sellers eager to make a deal.
-Robert Heck, VP of Mortgage @ Morty
Paid Partner
Spotlight: Gen Z Homeowners
A study from Redfin recently showed that a higher percentage of 25-year olds owned homes in 2022 than previous Gen X and millennial generations. There are a number of contributing factors to this, including greater assistance from relatives with down payments and historically low mortgage rates in 2020 and 2021. It’s also possible that this trend could reverse after a few years of higher rates, but it challenges the idea that younger generations haven’t been able to access the housing market.
