Is the Housing Market Cooling Down?
According to a recent article in the Los Angeles Times, the housing market is cooling ever so slightly. Data shows that home prices aren’t rising as quickly as they did earlier this year and bidding wars are decreasing as more and more homes are being put up for sale. When you factor in rising mortgage rates, you can feel the shift in the housing market.
The article continues to discuss important numbers such as:
[list_item]”Asking prices declined one-third of a percent in July, the first drop on a monthly basis since last November, according to data compiled by Trulia.com.”[/list_item]
[list_item]“Pending home sales — in escrow but not yet closed — dropped four-tenths of a percent in June, according to the National Assn. of Realtors. Resales of houses in June declined 1.2%.”[/list_item]
[list_item]“Inventory rose in a number of the hottest housing markets recently, after hovering near record lows for a year or more. According to data compiled by Realtor.com from Multiple Listing Services around the country, inventories rose 7.8% during July in Los Angeles.”[/list_item]
[list_item]“Not as many potential buyers are out shopping.”[/list_item]
[list_item]“Affordability is beginning to erode as the result of cumulative home price increases plus higher mortgage interest rates.”[/list_item]