I hope you are having a wonderful week! As you can imagine, there’s always lots happening in the financial and housing markets. I have been watching some fascinating shifts in the housing market that I want to share with you today. There is a lot of noise out there right now, so I wanted to cut through the chatter and share what these changes actually mean for you.
First, let’s talk about the big news: inflation. We just received consecutive inflation reports that came in far below expectations. Wholesale prices and consumer prices both showed unexpected cooling, which sent a wave of relief through the bond market. Because of this, mortgage rates just moved lower, hitting their best levels in over a week and reversing some of recent weeks’ upward pressure. While we are not looking at drastic drops, the steady stabilization is fantastic news for buyer purchasing power.
Meanwhile, June data showed that the median U.S. home-sale price hit a new record, driven largely by affluent buyers. However, there is a silver lining if you look closer. Home price appreciation is actually projected to cool significantly through the rest of the year. Experts now forecast existing-home price growth to slow down to just 1.2 percent. Because home prices are growing more slowly than average wages, affordability is quietly improving. Good news for buyers! Sellers are resetting their expectations, giving buyers more negotiating power and slightly lower projected monthly payments.
I also frequently hear from folks wondering why the market feels so competitive when headlines claim that millions of American homes sit vacant. A recent LendingTree analysis clarifies this contradiction perfectly: vacant does not mean available. Out of 14.5 million vacant units, the vast majority are seasonal vacation homes or rentals. Fewer than 800,000 are actually listed for sale.
The bottom line? We are looking at a housing market that is gradually gaining healthy momentum. Affordability is finally starting to improve through realistic property pricing rather than just waiting on the edge of our seats for interest rates to drop.
Whether you are looking to buy, planning your next investment, or advising your own clients, I am always here to help you map out the best path forward. You’re always welcome to reach out to me by simply sending me an email or calling/texting me at 818.307.6072.
