RE Stats: 2/13-2/21

The Two Big Issues the Housing Market's Facing Right Now

The biggest challenge the housing market’s facing is how few homes there are for sale. Mark Fleming, Chief Economist at First American, explains the root causes of today’s low supply: “Two dynamics are keeping existing-home inventory historically low – rate-locked existing homeowners and the fear of not finding something to buy.

1. Rate Locked Homeowners

When so many homeowners are rate locked and reluctant to sell, it’s a challenge for a housing market that needs more inventory. However, experts project mortgage rates will gradually fall this year, and that could mean more people will be willing to move as that happens.

2. The Fear of Not Finding Something To Buy

The other factor holding back potential sellers is the fear of not finding another home to buy if they move. Worrying about where they’ll go has left many on the sidelines as they wait for more homes to come to the market. That’s why, if you’re on the fence about selling, it’s important to consider all your options. That includes newly built homes, especially right now when builders are offering concessions like mortgage rate buydowns.

In Mesa County

• There are currently 486 active homes on the market in Mesa County. This is a slight increase from 484 last week.

• The average sold price YTD is $410,234 and the median sold price YTD is $371,250.

• There have been 59 price reductions in the last 8 days.

• There have been 92 new listings in the last 8 days.

• There have been 88 pending listings in the last 8 days.

• The average DOM for the active homes is 102.

Last Weeks New Listings

Last Weeks Sold Listings

NATIONAL MARKET UPDATE

Builders took a break in January, shown by a dip in Housing Starts. That was the fifth straight month of declines, but building has hardly ceased—the number of homes under construction is near the highest level on record.

Plus, things are looking up. Pointing to the future, permits for new projects edged up in January. In addition, builder sentiment rose in February for the second month in a row, up seven points, to the strongest reading since last September.

Altos Research found demand is holding, with more homebuyers able to afford homes at current prices and mortgage rates than there are sellers. Buyers know they can refinance if rates drop, and if rates rise, they made a smart move.

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