The national housing market is dealing with an issue of supply and demand right now and it’s impacting both buyers and sellers.
Specifically, the national housing market has too few people selling their homes compared with the number of people who want to buy homes, according to a recent report from Standard & Poor’s/Case Shiller.
This is consequently driving home prices up, which in some cases is making available homes for sale unaffordable to buyers.
It’s certainly a unique situation and certainly one that is expected to impact home buyers and sellers right here on the Bethesda, MD real estate market as well.
Recent National Housing Market Activity Explained
Here’s what we know based on the recent Standard & Poor’s/Case-Shiller 20-city index:
- Last year saw a 13.4 percent jump in the average price of a home sold.
- Average prices nationally are expected to increase by single digits this year.
- The gains are expected to be the strongest in those cities with strong job growth, including Seattle and Austin.
- Meanwhile, lenders are beginning to ease barriers for those with less-than-ideal credit, meaning that these home buyers could find it easier to qualify for a mortgage and buy a home.
- Currently there are about five months worth of homes on the market, compared with 5.9 months in 2012 and 8.3 months in 2011.
- Part of the explanation of low housing inventory is the fact that about 19 percent of home owners remain underwater on their mortgages, which may deter some sellers from listing because their sales price may be less than what they owe.
- And an additional 37 percent are “effectively underwater,” which means that their sale would not be enough to cover the cost of listing their home as well as putting a down payment on a new home.
- But luckily, warmer weather, job growth and a more robust economy are expected to help encourage more home owners to list their properties this spring.
Experts also believe that the rise in home prices will help the problem correct itself. After all, as sales prices continue to rise, it will lure more home owners to list their properties.
This in turn could lead to more listings, which might ease the bidding wars among buyers and help lower sales prices to make them more affordable.
Your Dedicated Bethesda, MD Real Estate Expert
I believe that if you want to enjoy a successful outcome on the local housing market here in Bethesda, then it’s paramount to keep up with activity on the national level. That’s why I find this latest real estate market so fascinating.
If you’re considering entering the Bethesda MD real estate market anytime soon as a home buyer or seller, please contact me, Melinda Estridge, and my team of DC area REALTORS® to discuss how this recent national activity may impact you.
Until next time,
Melinda
