SANTA CLARA, Calif.,
Aug. 13, 2019 /PRNewswire/
-- Lower interest rates are prompting more buyers to come into
the market, putting pressure on an already tight U.S. housing
market and reversing 10 months of national inventory growth,
according to realtor.com®'s July
2019 Monthly Housing Trend report released today. The
report, which tracks key trends across the market, including the
national median home price, days on market and inventory, showed
flat inventory growth, which could lead to inventory declines
sooner than originally predicted.
In July, active listings on realtor.com were flat, following
slowing growth since the start of the year. Newly listed properties
were down 7 percent from a year ago.
The national median home price in July was $315,000, up 5.5 percent from a year ago and a
decrease from last year's year-over-year growth of 8.7 percent.
Additionally, July prices were down 0.2 percent from June, marking
the earliest seasonal slowdown in home prices since 2012. The
median number of days on market in July was 58, the same as a year
ago.
"July's data highlight tension in the housing markets between
buyers eager to take advantage of lower mortgage rates and
potential sellers concerned about slowing price growth," said
George Ratiu, realtor.com's senior
economist. "The decline in newly listed properties suggests that
some would-be sellers are stepping back from the market, during the
peak buying season, when most people are searching for their next
home."
Ratiu noted that although overall housing inventory had been
growing, the number of homes in the entry-level segment declined.
Now that trends are shifting for the market as a whole, he said
challenges for entry-level and first-time buyers are mounting,
including faster price growth ahead.
The inventory of properties priced below $200,000 in July decreased 9.9 percent
year-over-year, while at the same time, the inventory of homes
priced above $750,000 increased 6.6
percent. Competition for entry-level homes continues to be tight --
homes priced below $200,000 only
spent 56 days on the market, whereas properties priced over
$750,000 spent 81 days on the
market.
Despite these challenges, some millennials are finding success.
The share of millennial mortgage originations increased to 46
percent from 43 percent last year, according to realtor.com's
second quarter Generational Propensity report.
The report found the median home purchased by millennials was
priced at $248,000, up 5 percent
year-over-year, a bigger increase than either Gen X or boomers had
in home purchase price. Looking across generational cohorts, the
larger gains in the price of homes purchased by millennials reflect
both the intense competition at the entry-level price point and the
fact that some millennials have been delaying major life milestones
(e.g. starting families, forming households, having children), and
are skipping the starter home to purchase larger, trade-up
homes.
The report also found that while Gen X and boomers have
increased their down payment percentages, millennials saw the
average down payment slip to 8.2 percent from 8.9 percent a year
ago. This increased the size of the typical millennial loan amount
to $227,000 from $215,000. Lower mortgage rates are helping to
cushion the impact of buying a higher-priced home and making
additional debt more affordable. The monthly mortgage amount that
millennials paid on a newly purchased home fell to $1,099 from $1,131
year-over-year.
About realtor.com®
Realtor.com®,
The Home of Home Search℠, offers the most MLS-listed for-sale
listings among national real estate portals, and access to
information, tools and professional expertise that help people move
confidently through every step of their home journey. Through its
Opcity platform, realtor.com® uses data science and
machine learning to connect consumers with a real estate
professional based on their specific buying and selling needs.
Realtor.com® pioneered the world of digital real estate
20 years ago, and today is a trusted resource for home buyers,
sellers and dreamers by making all things home simple, efficient
and enjoyable. Realtor.com® is operated by News Corp
[Nasdaq: NWS, NWSA] [ASX: NWS, NWSLV] subsidiary Move, Inc. under a
perpetual license from the National Association of
REALTORS®. For more information, visit
realtor.com®.
CONTACT: Cody Horvat,
cody.horvat@move.com
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SOURCE realtor.com