Several reports from various industry sources seem to reinforce the notion that the housing market is moving back towards equilibrium from it frantic pace of recovery early this year. The prime indicator is the lack of a big jump in prices between June and July of this year. Prices still went up, but not by double digits as was the case earlier in the year.
I suppose that a would-be home seller might like the rapid recovery to continue a while longer, but it is really a good thing for the market overall that it pause to cool off a bit. The rapid run-up of home prices, combined with an increase in mortgage rates served to lock out many first time buyers. There was also a bit of” wait for it to go up more” greed going on that kept the inventory low and fueled the value increases. Many of those who waited may find that they will not be any better off and may have missed the very buyers they were hoping for.
One segment of the potential buyer pool – those who felt that they had to buy and get in before school starts in September – have already made their selections. Closing by September 1st pretty much meant that you needed to have a signed deal by August 1st, in order to allow enough time for the mortgage company to get the deal underwritten.
The “prime” selling season is generally in the months of May, June, July, and August; however, the good selling season lasts until Halloween. After Halloween, things slow down quite a bit as people start focusing upon the Thanksgiving and Christmas holidays. After that it’s winter, which is always a slow home sales season.
So we still have some good selling months left in 2013, if you were thinking of selling and we have some more stable months ahead if you are looking to buy. Mortgage rates have stabilized a bit, although they are expected to continue a slow upward creep. More inventory of homes is coming on the market, which is good for buyers, too. Home builders have also cranked up production, so more brand new homes are available, or will be shortly.