The housing market has suffered huge blows in the entire 2019 characterized by slow-paced growth, high-interest rates, rising home prices, among others – and the month of July is not spared from it. The numbers are in for the real estate market, and the home-price gains for July do not look good as well, despite its rising few numbers.
Alcynna Lloyd of Housing Wire wrote an article on this latest housing market news, saying that the home-price gains for July were the second-smallest growth in the past 4 years. Read the article below to know more about the recent home-price gains.
FHFA: Home-price gains in July were second-smallest in 4 years
Single-family house prices rose 5% in July from a year earlier, according to the Federal Housing Finance Agency. It was the second-smallest annual gain in more than four years, following June’s 4.9% pace.
The FHFA’s House Price Index is calculated using data from mortgages backed by Fannie Mae and Freddie Mac. Because of this, it excludes high-end homes bought with jumbo loans or cash sales.
The 12-month price changes were all positive in the nation’s nine Census divisions, with the Middle Atlantic posting the smallest gain of 3.6%, and the Mountain region leading the way with a 7.6% increase.
Measured from a month earlier, the Mountain division saw the strongest growth, increasing 1.2%. The Middle Atlantic Division has the smallest gain, at 0.1%.
As mentioned,, it was the second-smallest annual gain specifically for single-family home prices, reaching 5% in the month of July, following the 4.9% pace in the month of June. While growth like this are good news in the short term, let’s not forget that the bigger picture dictates that annual gains for home-price is still very slow.
This latest development in the housing market was also affirmed by Jacob Passy in his article published in Market Watch, saying that despite home-price going up for the entire country, there was a certain US city where home-price actually fell. Read the article below to know what city it is.
Home-price growth slowed to a crawl in July, but prices actually fell in one U.S. city
The numbers: The pace of home-price appreciation across much of the U.S. continued to peter out in July, according to a major price barometer.
The S&P CoreLogic Case-Shiller 20-city price index remained the same in July on a monthly basis after seasonal adjustments.
On an annual basis, the index only increased 2% from July 2018, down from 2.1% the month prior. This represents the slowest rate of home-price appreciation since 2012.
What happened: Between June and July, home prices rose only in 14 of the 20 large cities that the Case-Shiller index tracks, and most of these increases were relatively small.
Phoenix and Las Vegas continued to experience the most pronounced home-price growth of these cities over the past year, with increases of 5.8% and 4.7% respectively. Charlotte sped past Tampa for the No. 3 spot, with home-price appreciation of 4.6%.
“The geographic flip-flop of home-price growth has cemented itself strongly across the country,” Ralph B. McLaughlin, deputy chief economist and executive of research and insights for CoreLogic said. “Pacific markets are now making up a majority of housing markets with the lowest price growth, while second-tier markets in the South and Midwest continue to lead the country. This is a result of years of unprecedented yet unsustainable growth along the West Coast combined with stubbornly solid economic growth that is benefitting areas initially left out of the recovery from the Great Recession.”
Seattle continued to be the only city where home prices have fallen over the past year, but the rate of home-price declines has slowed.
As mentioned above, only the city of Seattle where home prices have fallen significantly over the past year. However, looking at the bigger picture, the rate of home-price decline of the city has slowed. In addition, the geographic flip-flop of home-price growth has cemented itself strongly across the country, which is actually a very good sign for the real estate market.
We all know that getting into real estate market requires timing. Now, given the data above, is it the right time to start buying a house? To help us in answering this very important question, let’s check out this article written by Andra Chantim Good Housekeeping about the best time to buy a house according to real estate experts. Read the article below to know the answer to our question.
This Is the Best Time to Buy a House, According to Real Estate Experts
No matter how many times you’ve done it, purchasing a new home can be intimidating, stressful, and of course, incredibly exciting. Before you jump online and start drooling over wraparound porches, come up with a game plan. In addition to the advantages you’ll gain from finding the right realtor and researching your local market, figuring out the best time to buy a house can really pay off, whether that’s in the form of savings or a property in your ideal neighborhood.
If you want the most choices, buy a house in the spring or summer.
February and March is when you’ll first start to see an uptick in new listings online, says Skylar Olsen, director of economic research for Zillow. Sellers of single-family homes tend to be parents, and they often put their homes on the market in the spring with the goal of moving out before school starts back up. Around the same time, potential buyers are house-hunting, as they prefer to be out and about when the weather is warm, says Nadia Evangelou, a research economist for the National Association of Realtors. The combination of these two factors results in a period of about five months — March through July — when a buyer will have the largest selection of new listings on the market, but the most competition. Olsen sees the largest amount of homes being sold at list price or above during March, April and May, while Evangelou identifies June as the peak month for home-selling activity.
If you’re looking for a deal, buy a house in the winter.
Since most prospective buyers would rather casually scroll through online listings in PJs than go open-house hopping in puffy coats, winter is considered the off-season in the real estate world. Sellers strategically wait to list their homes during a period when they will generate the most interest, which is a big reason why there’s less inventory on the market during the colder months. So while you may not be spoiled for choice, you’ll have less competition for the houses that are up for sale at this time, which were either left over from the spring/summer or newly listed for any number of unique reasons. “Owners who list their homes during the off-season may be dealing with a time-sensitive situation (like relocation for a new job) that requires them to sell their properties as soon as possible,” says Olsen. Read the entire article here…
As mentioned above, real estate experts think that buying a new house can be exciting at the same time intimidating experience, especially for first-time homebuyers. The experts also think that if you are looking for more choices, the best time to buy a house is during Spring (February or March) where you’ll see an increase in home listings online. On the other hand, if you’re the type who’s looking for the best deals, then the best time to enter the market is during the winter.
Now you have your ultimate guide as to whether to buy a house not, the decision is all yours now. If you’re finished weighing in your options and looking for some help with the experts in home buying or selling, Dependable Homebuyers can help you find your way in the housing market. To learn more, visit our website at https://www.dependablehomebuyers.com/