Tag: Orlando Real Estate

The number of homes for sale is growing at a record pace, according to new numbers from the National Association of Realtors’ consumer website. Their Monthly Housing Trends Report shows active listings increased 30.7 percent year-over-year in July. It was the third month of gains, and a good sign for home buyers. Why? Because low inventory has been the main thing driving home prices higher and more available homes for sale will help slow future increases. Danielle Hale, the website’s chief economist, says the market is balancing. “The U.S. housing market continues to move toward more evenly balanced supply and demand compared to the 2021 frenzy,” Hale said. “Our July data shows elevated mortgage rates left many buyers tightening their budget and sellers responding with price reductions, while home shoppers who kept searching saw more available options.” More available options is good news but there’s still a ways to go before the market is properly balanced. In fact, the report shows that the number of active listings is still 44.4 percent lower than it was in July 2019. (source)

The housing market has shifted and Americans are still adjusting to the change, according to the results of Fannie Mae’s most recent Home Purchase Sentiment Index. The index is based on a survey of Americans which asks them for their perception of the current housing market and their personal financial situation. In July, survey respondents were less optimistic than they’ve been in months past, with fewer participants saying they feel now is a good time to buy or sell a house. But while market sentiment has fallen, respondents say their household income is up from last year and they feel affordability conditions will improve over the next year. Doug Duncan, Fannie Mae’s senior vice president and chief economist, says Americans have mixed feelings about the market. “We believe consumer reaction to current housing conditions is likely to be increasingly mixed: Some homeowners may opt to list their homes sooner to take advantage of perceived high prices, while some potential home buyers may choose to postpone their purchase decision believing that home prices may drop,” Duncan said. (source)

Equity is the difference between what your home is worth and what you owe on your mortgage. Which means, it’s a good thing to have – and, these days, nearly half of all homeowners do. In fact, according to ATTOM Data Solutions’ second-quarter 2022 U.S Home Equity & Underwater Report, 48.1 percent of mortgaged residential properties are now considered equity rich – meaning the amount homeowners owe on their home is less than 50 percent of the home’s market value. The share of equity-rich homes is up from 34.4 percent last year at the same time and 44.9 percent during the first quarter of this year. Rick Sharga, executive vice president of market intelligence at ATTOM, says homeowners will continue to make gains, even as the market slows. “While home price appreciation appears to be slowing down due to higher interest rates on mortgage loans, it seems likely that homeowners will continue to build on the record amount of equity they have for the rest of 2022,” Sharga said. As it is, the percentage of equity rich homes is now the highest it’s ever been. (source)