Good Homes Are Still Selling
The Housing Market Is Not Frozen: Buyers Are Out and Home Prices Hold Strong
The housing market is far from frozen. Buyers are consistently showing up, home prices are holding strong, and mortgage rates even experienced a bit of relief this past week.
Between a shift in inflation dynamics and an unexpected surge in real estate activity, the summer market is proving to be highly active. Here is a deep dive into the numbers driving the market right now.
The Real Story Behind the Inflation Numbers
Inflation remains the biggest economic narrative, but the headline figures do not tell the whole story. To truly understand where interest rates are heading, you have to look at core inflation.
On a monthly basis, core inflation rose by just 0.2%. Even more revealing is that almost 85% of that increase came from just two specific categories: shelter and airline fares. When you strip out those two volatile components, the rest of core inflation rose by a mere 0.03%.
This is incredibly important because it proves inflation is no longer a broad-based, runaway issue affecting every single sector of the economy. Additionally, while wholesale inflation moved higher due to oil prices, oil prices pulled back later in the week, taking a welcomed layer of pressure off the markets and interest rates.
Home Buyers Are Crushing Expectations
If you are waiting for the housing market to stall, the latest data suggests otherwise. Existing home sales for the month of May surpassed expectations, climbing 3.2% following a strong showing in April. This activity outpaces what the market experienced at this exact time last year.
Key takeaways from the current buyer behavior include:
- Strong Demand: Across the country, 25% of homes are still selling above list price.
- First-Time Buyers Are Leading: First-time home buyers now make up 35% of the market. This represents the highest percentage of first-time buyer activity since 2020.
- Surging Interest: Mortgage applications jumped 7% on a week-over-week basis, proving that a significant wave of people are actively preparing to buy this summer.
Ultimately, inflation is still driving short-term volatility, but the underlying housing market remains incredibly resilient. Buyers are active, inventory is steadily improving, and good homes are continuing to sell fast.
Upcoming Event: “Just List. Just Sell. Just Win.”
Following a phenomenal turnout and great feedback at our recent event in Colorado Springs, the next real estate presentation is officially scheduled.
This will be the final opportunity to catch this specific session before entirely new content is rolled out.
- Event: Just List. Just Sell. Just Win.
- Date: Next Thursday, June 18
- Time: 11:30 AM
- Location: Simms Steakhouse
Lunch is provided, and the insights shared will help you maximize your strategies in this active summer market. Space is limited, so please make sure to RSVP to secure your spot.
Connect 7 Days a Week
Whether you have a client who needs to get pre-approved over the weekend, a quick scenario question, or you want to run numbers to strategize how to close more deals, support is available seven days a week from 8:00 AM to 8:00 PM.
Call or text Brian Manning at (303) 500-3839 to get your files moving forward. Have a fantastic weekend!
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Questions? Concerns? Ready to get started with my strategic buyer consultation?
Call me any day of the week, Monday- Sunday to get connected & learn about your options.
It’s never too soon to understand what you can afford!
303-500-3839
Brian@BrianManningTeam.com
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Email me directly at Brian@BrianManningTeam.com