It can be easy to forget, but while skimming through the news of the day, there are usually opportunities hidden within changing circumstances—even those presented as thoroughly unfavorable. Last week, the investment strategists at SeekingAlpha.com offered a view of the state of the U.S. housing market that wasn’t widely available elsewhere. If nothing else, it offered a positive note that South Palm Beach real estate watchers could appreciate.
A case in point was last Monday’s article that emphasized a different take on the soaring mortgage rates and falling home sales numbers that inspired gloomy commentaries elsewhere:
“Housing market becomes more balanced as falling home sales lead to higher inventory”
The upbeat headline was followed by a real estate industry leader’s assessment that the market was indeed “making steady progress toward balance.” The details that followed did confirm that point of view, although they were hardly grounds for breaking out the champagne:
- In August, U.S. home sales in 53 metro areas fell 9.7% from a year earlier—with one result that buyers were now presented with more options.
- One option was an increase in the choices U.S. buyers were now being offered— year-over-year, a 30.4% increase.
- For those who will need to buy after they have sold their own home, the wider inventory “is a great opportunity.”
- For a long time, the standard definition for “balanced market” conditions was agreed to be six months of inventory—but changing homebuying patterns and the evolution of technology had redefined “balance” to equal four months.
- Now for the first time in nearly two years, inventories had swollen to two months’ worth—steady progress toward the new four-months mark and “balanced market” conditions.
In a completely balanced market, conditions favor buyers and sellers evenly, so it is considered a healthy state for normal commerce. Those latest numbers may not quite be a reason to pop any corks, but South Palm Beach real estate watchers probably can appreciate the rays of light within them. Remember, some of the biggest gains can be found in real estate in a softer market, so if you are considering listing or buying, don’t let any of the headlines dissuade you from doing what is best for your family now. Call me anytime at (561) 316-6800 for the latest South Palm Beach real estate results!
Do you know how much home you can afford?
Most people don’t... Find out in 10 minutes.
Get Pre-Approved Today
