Real estate has a couple of up statistics.
Inventory and new listings are higher than they were this time last year. Redfin reports new listings are up 13% over the last four weeks ending February 25, 2024; compared to last year. They are reporting it is the biggest jump in the last three years.
Thirty-year fixed rate mortgages also when up this week. A slight increase to 6.94% as compared to 6.9% last week. It looks as though the anticipation of lower rates this spring will not be realized. All indications are the Federal Reserve, due to some positive economic indicators, will not look at any possible rate cuts until later in the year.
Sales of newly constructed homes are trending upward. But affordability will remain a big issue for many. With interest rates remaining in an upper range of which we have not seen for years and wages lagging inflation; affordability is a problem.
Will the combination of increased inventory and buyers qualifying at lower price ranges cause prices to start dropping? Normally it would be the case. But we are in, and have been in, uncharted economic territory.
