As the days grow longer, and hopefully warmer, it’s an opportune time to add real estate news to your summer reading list – especially if you’re thinking of buying or selling. If you’re not sure where to start, we’ve got you covered! Last month, we shared a high-level look into the status of the spring housing market. Curious about what’s happened since, and what to keep on your radar as we cruise through the season? We’ve pulled together key insights to share with you:
- Feeling hot, hot, hot – Projections around fierce competition in the spring market proved valid. According to a recent Kiplinger article, inventory has fallen year-over-year for 23 consecutive months. More specifically, recent data from the National Association of Realtors shows the supply of listings in April fell 9 percent year-over-year. While builders continue to put up new homes, shifting their eye toward the millennial buyer, competition is expected to remain vigorous.
- Millennials don’t shy away from a little competition – A recent Ellie Mae Millennial Tracker report revealed that purchase loans amongst millennials continued to increase in April, even in some of the most expensive markets. Despite gravitating toward more affordable housing in markets such as the Southeast and Midwest, this group of go-getters are also settling down in large cities ranging from New York City to Chicago, Los Angeles and San Francisco.
- Results of the much-anticipated June meeting – The Federal Reserve didn’t raise the bank’s key interest rate in May. However, following its June meeting, the Federal Open Market Committee announced that it is raising the federal funds rate for the second time this year. Per a recent Federal Reserve announcement, the FOMC voted to raise the target range for the federal funds rate by 25 basis points to a range of 1% and 1.25%.
What are your thoughts on the current state of the housing market? Share in the comments below!