As we conclude the summer season, home sales typically rise. However, this does not seem to be the case this quarter. With mortgage rates at a substantial low, experts are wondering why we are not seeing an increased number of home sales.
Price is one of the factors slowing the market. Existing and new home prices have risen this year. Why? Simple supply and demand. Because of low interest rates, there are more people seeking homes, pushing prices up. A new home is approximately $50,000 more than an existing home. The overall high prices are slowing sales.
Supply is another critical factor impacting the housing market. Buyers do not want to compromise on such a large purchase. They are willing to wait until they find the perfect home to fit their needs. With a low supply, there are simply fewer choices. With fewer homes to choose from, buyers are not finding what they want and are opting to not buy anything at all.
As we move into fall, prices may begin to drop a bit more and encourage more buying. Those who were unable to find homes during the summer might just catch some great deals this fall.
As we conclude the summer season, home sales typically rise. However, this does not seem to be the case this quarter. With mortgage rates at a substantial low, experts are wondering why we are not seeing an increased number of home sales.
