The good news was that consumer confidence in the housing market was increasing all year long. This was due to increasing home prices and a job market on the rise. But now with the volatile stock market, fear over China and uncertainty over interest rates, the market is slowing.
Buyer demand fell for the 4th straight month, but it’s still higher than it was last year. So again that was good news for 2015.
According to Redin’s chief economist Nela Richardson, “We’re starting to see buyer fatigue set in. They’re starting to wonder, ‘is this house worth this price,’ and we’re seeing buyer demand, finally, after months of being over the top, starting to pull back.”
Prices were up 4.5 nationally in June which while good for sellers have priced some 1st time home buyers out of the market as the lower end homes were seeing bigger price jumps. First time buyers made up 28% of July sales, also down for a 2nd straight month according to NAR (the National Association of Realtors)>
Sellers were encouraged earlier in the year with rising home prices, but buyers are still frustrated by the lack of homes for sale which has slowed down sales. With slower sales, prices may fall as well. This could be a very good thing for buyers as prices become more realistic for them just as more supply is happening in homes. That would lead to stable, healthy growth. On the other hand if the market continues to swing wildly, that could continue to cool down the housing market as well.
But for now with slower sales, this is a great time to be a buyer. You have less competition and more choices. If you have been waiting to buy this year, now is your time! I’ve got some really great listings in a variety of price ranges, just waiting for your offer, so check them out! www.StLouisHome.com. We’ve helped 26 buyers become home owners this year, we are ready to increase that number and help you get your part of the American Dream this Fall!