More Homes, Slower Price Growth – What It Means for You as a Buyer
More Homes, Slower Price Growth – What It Means for You as a Buyer There are more homes on the market right now than there have been in years – and that could be a game changer for you if you’re ready to buy. Let’s look at two reasons why. You Have More Options To Choose From An article from Realtor.com helps explain just how much the number of homes for sale has gone up this year: “There were 29.2% more homes actively for sale on a typical day in October compared with the same time in 2023, marking the twelfth consecutive month of annual inventory growth and the highest count since December 2019.” And while the number of homes on the market still isn’t quite back to where it was in the years leading up to the pandemic, this is definitely an improvement (see graph below): With more homes available for sale now, you have more options to choose from. As Hannah Jones, Senior Economic Research Analyst at Realtor.com, explains: “Though still lower than pre-pandemic, burgeoning home supply means buyers have more options . . .” That means you have a better chance of finding a house that meets your needs. It also means the buying process doesn’t have to feel quite as rushed, because more options on the market means you’ll likely face less competition from other buyers. Home Price Growth Is Slowing When there aren’t many homes for sale, buyers have to compete more fiercely for the ones that are available. That’s what happened a few years ago, and it’s what drove prices up so quickly. But now, the increasing number of homes on the market is causing home price growth to slow down (see graph below): In certain markets, the number of available homes has not only bounced back to normal, but has even surpassed pre-pandemic levels. In those areas, home price growth has slowed or stalled completely. As Lance Lambert, Co-Founder of ResiClub, explains: “Generally speaking, housing markets where active inventory has returned to pre-pandemic 2019 levels have seen home price growth soften or even decline outright from their 2022 peak.” Slower or stalled price growth could give you a better chance of finding something within your budget. As Dr. Anju Vajja, Deputy Director at the Federal Housing Finance Agency (FHFA), says: “For the third consecutive month U.S. house prices showed little movement . . . relatively flat house prices may improve housing affordability.” But remember, inventory levels and home prices are going to vary by market. So, having a real estate agent who knows the local area can be a big advantage. They can help you understand the trends in your community, which can make a real difference in finding a home that fits your needs and budget. Bottom Line More housing options – and the slower home price growth they bring – can help you find and buy a home that works for your lifestyle and budget. So don’t hesitate to reach out if you want to talk about the growing number of choices you have right now.
Town hall set to discuss plan for homeless shelter
Town hall set to discuss plan for homeless shelter By Robin Hebrock Pahrump Valley Times October 18, 2024 - 7:00 am Plans to build a Transitional Housing and Nutrition Center in Pahrump may have many local residents riled up but the advisory committee heading the project is forging ahead nonetheless. Next week, the advisory committee, made up of more than 30 volunteers representing a variety of local sectors, will hold a Community Town Hall to provide an overview of the project and answer questions from the public. It’s an event that committee member Kathie McKenna acknowledged there may be some tense moments as those who oppose the plan speak out. However, she said the committee is not focused on the negativity but rather, on compassion. “These people are human beings,” McKenna stated. “But some treat these people horribly, just because they had something happen in their life that caused them to be homeless. And it makes me wonder, if the homeless here were all veterans, would those detractors look at them differently? Would they look at them differently if I told them that lady over there saved a five-year-old boy from drowning, or that man pulled a man out of a burning car? Would they look at them differently?” Every person’s situation is unique, McKenna stressed, and rather than ignoring or ridiculing those experiencing homelessness, she would like to see the community embrace the idea of helping them turn their lives around and regain stability. That’s the main purpose behind the Transitional Housing and Nutrition Center, which aims to provide separate housing wings for men, women, families, domestic violence victims and unaccompanied minors, along with meals served on site, a supermarket-style food bank and wellness services, such as mental health care, job placement, career development and life skills training. McKenna explained that the project comes as a result of the Biden administration’s infrastructure bill and the USDA Rural Partners Network. Nevada was one of 11 states selected for the Rural Partners Network’s focus, with several Silver State counties chosen as sites for potential projects, including Nye County. “Because of Nye County’s size, they decided they were going to do two projects here, one in the north and one in the south. The one in the north is the new childcare center in Tonopah,” McKenna said. “Here in the southern part of the county, a bunch of nonprofits got together to discuss what we would like to see. After a series of long discussions, the USDA Rural Partners Network chose the shelter for their signature project for Southern Nevada. “And just so everyone understands, there has been no money allocated,” McKenna noted. “That is a rumor that was completely and totally made up. There is no money allocated. So how is it going to be paid for? Grants. The vast majority of people here do not understand grants. Where do grants come from? They come from your federal tax dollars, which get allocated to the states.” Before grants can be secured, however, there are some key steps to undertake first. Land must be acquired and the committee has already been given three options to review by the Bureau of Land Management. “We’re looking at doing probably roughly 40 acres, which will allow us to do not only the homeless shelter but to also look down the road to working with affordable housing builders, so we can help these individuals transition from homeless into housed,” McKenna said. She also underscored the intention of “affordable housing”, remarking, “It allows the clients to pay rent based on their actual income. They pay 30 percent of their income on rent. Everybody thinks affordable housing means it’s going to be free or all Section 8 or like a slum, but it’s not. It’s pay-based rent so that people can actually afford to have a home.” There is little doubt that members of the community will want to have their say as the project moves forward, too, which is why there will be two town halls held, beginning with next week’s gathering. “I want this to be a calm, rational meeting,” McKenna added. “I’m OK if people don’t agree but I want to hear the rationalization behind it. Because we may be able to address their concerns.” The town hall meeting will take place Wednesday, Oct. 23 at 6 p.m. at the Valley Electric Conference Center, 800 E. Highway 372. A second meeting is slated for Wednesday, Nov. 20 at the same time and location. Contact reporter Robin Hebrock at rhebrock@pvtimes.com
Why Did More People Decide To Sell Their Homes Recently?
Why Did More People Decide To Sell Their Homes Recently? Homeowners typically slow down their moving plans as the summer months wrap up, and as a result, fewer homes are listed for sale in the fall. It’s a predictable, seasonal trend in real estate. But this year, mortgage rates came down at the same time the number of homes on the market usually starts to decline. So, what happened? More homeowners decided to sell, so more homes came to the market. The most recent data from Realtor.com reveals that in September, the number of homes put up for sale increased by 11.6% compared to this time last year. As the green circle in the graph below shows, the typical September decline in homes coming to the market didn’t happen – that number actually went up (see graph below): Ralph McLaughlin, Senior Economist at Realtor.com, explains why there was an unseasonable rise: “This sharp increase is largely due to the decline in mortgage rates in mid-August, enticing homeowners to sell.” So, as rates came down at the end of the summer, more people jumped into the market and decided to make their move. What Does This Mean If You’re Looking To Buy a Home? It means more fresh options to choose from than you’ve had in a while – not the ones that have been sitting around, unsold. But keep in mind, mortgage rates have been volatile lately, ticking up slightly in recent weeks, which could limit the number of people who feel comfortable with the idea of selling in the months ahead. And in this market, it’s mortgage rates that are largely driving homeowner decisions. Why Buy Now, Rather Than Wait? Whether you're looking for a starter home, an upgrade, or hoping to downsize, you have more homes to choose from right now. And if you can find what you’re looking for, know that these new, fresh options won’t be on the market forever. So, staying on top of what’s available in your local area with a trusted agent is key. And remember, one month doesn’t make a trend. So, what does that mean going forward? Whether more homeowners than normal continue to put their houses on the market will largely depend on what happens with mortgage rates and the economic factors that impact them, like inflation, employment, and the reactions by the Federal Reserve. With that in mind, now might be your moment, while more homes are available – if you’re ready, willing, and able to buy this fall. Lawrence Yun, Chief Economist at the National Association of Realtors (NAR), explains: “The rise in inventory – and, more technically, the accompanying months’ supply – implies home buyers are in a much-improved position to find the right home and at more favorable prices.” Bottom Line As rates came down at the end of the summer, sellers started to trickle back into the market, which means buyers have more choices right now. Let’s connect to make sure you have a trusted advisor to help you navigate the new options before they’re all scooped up.
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