The housing market is always a hot topic of conversation, and the latest news is that January saw a decline in house prices. This news has been reported by the National Association of Realtors (NAR), who reported that the median price of existing homes sold in January was down 1.2% from the same time last year.
The NAR also reported that the number of existing homes sold in January was down 5.1% from the same time last year. This is the lowest level of sales since 2015, and it is a sign that the housing market is slowing down.
Experts believe that the decline in house prices and sales is due to a combination of factors, including rising mortgage rates, higher home prices, and a lack of inventory. Mortgage rates have been steadily increasing since the end of 2017, which has made it more difficult for buyers to afford homes. At the same time, home prices have been increasing, making it more difficult for buyers to find homes within their budget. Finally, there is a lack of inventory, which means that there are fewer homes available for sale.
The good news is that the decline in house prices and sales is expected to be short-term. Experts believe that as mortgage rates stabilize and more inventory becomes available, the housing market will start to recover. In addition, the economy is still strong, which should help to boost home sales in the coming months.
In the meantime, buyers should take advantage of the current market conditions by looking for homes that are priced below market value. Sellers should also consider pricing their homes competitively in order to attract buyers. By doing so, both buyers and sellers can benefit from the current market conditions.
Overall, January saw a decline in house prices and sales, but experts believe that this is only a temporary setback. As mortgage rates stabilize and more inventory becomes available, the housing market should start to recover in the coming months.