Real estate market doesn't know what to do

 The risk of a "sustained downturn" in the housing market is rising, as home prices show further signs of cooling off.

• 🏷️ Home prices rose 2.7% nationally in April, compared with a year earlier, down from a 3.5% jump in March, according to the S&P CoreLogic Case-Shiller Index released today.
• ⚠️ April had the smallest annual price gain in nearly two years, S&P noted.
• 📉 And on a seasonally adjusted basis, prices fell 0.4% nationally from March.

What they're saying: That decline "raises the risk that prices are entering a sustained downturn, as the market finally buckles under the weight of near-7% mortgage rates," Capital Economics North American economist Thomas Ryan wrote today.

• "Clearly, the existing homes market is losing momentum," Ryan added, citing sky-high borrowing costs and rising supplies pressuring sellers' price expectations.

Zoom in: Other recent datapoints also point to the housing market losing steam.

• Sales of existing homes fell 0.7% in May from a year earlier, according to data from the National Association of Realtors released Monday.
• And median home sale prices rose just 0.7% year over year in May — the slowest growth in two years, Redfin notes.

Reality check: Inventory, though rising, remains relatively tight as homeowners continue to cling to lower mortgage rates, which will likely prevent prices from seeing a significant correction.

Yearly appreciation of homes 1950-2024

 

Common Sense

 

Making a $50K salary, 

but spending $60K on a car 

is what keeps people broke!

 Quick Market Update:

The Home selling engine is revving. The market will go full throttle soon.

Thinking of selling? 

Now is a Good time to do some updates like painting, flooring....anything that will make your home look more updated!

Why? Move in condition homes that are really nice, are selling really well.

Low home inventory makes your updated home a hot commodity!

Remember, low inventory and higher demand increases home values, (for the really nice homes).

Once inventory increases, then buyers have more to choose from, competition gets stronger, and values may fall.

If your home has been neglected for years, don't count on top dollar, because you won't get it.

Updated homes will sell first. Non-updated homes will sit on the market unless the price is attractive. We're not talking a few thousand dollars, depending on your level of condition, it could be many thousands of dollars.

A few thousand dollars in updates, could increase your homes value substantially!

Digging in your Indiana Yard?

Think about this when digging in your yard:

 Installation of a new sewer on an Indiana farm led to an incredible discovery of 13,000-year-old mastodon bones. Originally, the Schepman family thought cow or chicken bones had been found, but were shocked when they saw the giant tusk and 4-foot-long thigh bones. 

The bones were confirmed to belong to a male mastodon that most likely weighed 12,000 pounds and was between the ages of 40 and 50 when he died.

Body Protection

 https://x.com/gunsnrosesgirl3/status/1896816939043057881?s=19

Is it still a Sellers Market?

 Question: One day we hear it’s a Buyer’s market, then we hear it’s a Seller’s market. Which is it now?

 Answer:  A buyer’s market occurs when supply exceeds demand. To put it another way, there are plenty of homes for sale, but there’s a shortage of interested buyers. These conditions give buyers leverage over sellers because when supply is higher and demand is lower, the market is forced to respond.

In a buyer’s market, real estate prices decrease, and homes linger on the market longer. So, sellers must compete with each other in order to attract buyers. Typically, sellers will drop their asking prices to gain an advantage in the market. Furthermore, they are much more willing to negotiate offers to prevent buyers from walking away.

 A seller’s market arises when demand exceeds supply. In other words, there are many interested buyers, but the real estate inventory is low. Since there are fewer homes available, sellers are at an advantage.

In a seller’s market, homes sell faster, and buyers must compete with each other in order to score a property. These market conditions often make buyers willing to spend more on a home than they would otherwise. Therefore, sellers can raise their asking prices

The market has shifted in the last 2 years from a strong sellers’ market to a somewhat strong sellers’ market.

Multiple contracts are not quite as common, but selling prices are still good.

 When will this change? When Home supply is greater than demand.