Since the market crash 10 years ago homebuyers and sellers are uneasy about the next market correction. The uncertainty as to what this really means remains the million dollar question.
The Park City Board of Realtors does an amazing amount of work gathering data and educating the local realtors about the real estate market trends. In Park City, the real estate market is cyclical like most markets around the country. We are hitting the 10 year mark with a great run for home sellers.
A Shortage of Homes Available for Sale
If the inventory remains low this trend has a tendency to push home prices higher and with mortgage rates increasing this may cause home buyers to pause because we may have reached a tipping point.
We have had a few years of inventory decline but the data indicates a steady incline with property value appreciation. The consensus is if there is a real estate bubble it will not be consequential.
In July 2018, sentriLock, LLC provided the foot traffic with supporting data for property showings performed by a realtor. According to the National Association of Realtors the foot traffic in July 2018 climbed 3.2 points.
Quote "Foot traffic has a strong correlation with future contracts and home sales, so it can be viewed as a peek ahead at sales trends two to three months into the future."
With home prices and interest rates rising, would be buyers are sitting on the sidelines. View S & P Core Logic Case - Shiller Home Price Report.
According to the National Association of Realtors, Existing-home sales fell for the fourth straight month in July to their lowest level in over two years.
The National Association Of Realtors Chief Economist, Lawrence Yung commented, "Additional inventory will help contain rapid home price growth and open up the market to prospective homebuyers who are consequently — and increasingly — being priced out".
Attom Data Solution recently reported that the foreclosures starts increased 44 percent from a year ago in 96 cities in July.
Realtor.com Real Estate Market Report
Link to Article: Are Home Buyers Starting to Hit the "Pause" Button?
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