Landmark Lending

I am often asked the question - "Is now a good time to buy a home?" And also, "Don't you think the housing market is ripe for a correction?"

Both are very understandable questions given that nationally home appreciation increased 19% in the last 12 months. Then add to that interest rates have gone up more than a full percent closer to 4% on a 30 year fixed than the 3% range (and below) we had been seeing last year.

So you may be surprised to learn that existing home sales numbers were up in January 6.7% in January and 2.3% year over year. See the report here: https://www.nar.realtor/newsroom/existing-home-sales-surge-6-7-in-january

The obvious question is why? Very simple answer - most basic of economic principals - Supply and Demand. In January nationally we hit the lowest number in history of home inventory for sale at 860,000 homes. For comparison the last time we actually did have a housing bubble in 2007 there were 3,700,000 homes for sale during the mortgage melt down and foreclosure surge. So almost 3 million more homes for sale then and more than 4 times the current inventory we have today.

The average days on market before a home goes into contract is now 19 days nationally and there is only 1.6 months of existing homes in inventory - also a record low! In other words if no new homes were being added into the mix we'd have no homes available in about a month and a half.

So what's the moral of this story? Bad time to buy? Rents continue to up at around 10% per year so if you are waiting for a housing market correction you are going to be waiting quite a while and missing an incredible buying opportunity today.

Existing-Home Sales Surge 6.7% in January On a month-over-month basis, sales increased in all four major U.S. regions in January. Year-over-year, activity was mixed as two regions reported sagging sales, another saw sales increase and a fourth region remained flat.

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