August 23rd, 2019 9:55 AM by Jackie A. Graves, President
likely will worsen over the next year as a shift in the housing market occurs,
according to a report from realtor.com®. That shift could make it tougher for
home buyers to find a home to purchase, despite low mortgage rates that are
making it increasingly attractive to do so.
inventories could likely get near record lows by early 2020, says Danielle
Hale, realtor.com®’s chief economist. In June, the number of newly listed homes
fell by 2.3% compared to a year ago.
beginning of the year, the housing market looked poised for a long-awaited
turnaround for inventory levels. The number of listings increased 6.4% in
January compared to the year prior. However, since that time, the rate of the
increase has slowed significantly each month of this year, realtor.com® notes.
attributes the lower inventory of homes for sale to a multitude of reasons,
including the preference of baby boomers to age in place rather than move;
reduced consumer confidence in the economy; and “rate lock,” in which
homeowners purchased a home or refinanced with a mortgage rate below today’s
low rates. However, the “rate lock” may become less common as mortgage rates
continue to fall. The latest average for the 30-year fixed-rate mortgage was
3.60% last Thursday, the lowest average since
November 2016, according to Freddie Mac.
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