What the blue blazes does this mean?
A long time ago – make that a very long time ago – I had a German master at school whose favourite expression was “what the blue blazes do you think you are doing, boy?”, at some impropriety.
Well, in a different field, I read the following comment on the housing market. My question is: “what the blue blazes are you saying about the housing market” Because I have no idea.
“The housing market experience experienced a “conflict” between supply and demand in May as increased home values resulted in sales, which subsequently increased supply – but at the same time, lack of affordability and economic uncertainty reduced demand.
The market capacity for existing-home sales increased by 0.3 percent month-over-month and 12.5 percent year-over-year in May, while rising interest rates and a slight jump in unemployment countered equity-enhancing home price appreciation.
Still, given current market fundamentals, the housing market is underperforming.
Our Existing-Home Sales Capacity model’s analysis of the fundamentals that influence capacity indicates that the market is experiencing both tail and headwinds. The net effect is a very modest tail wind. The appreciation in home prices, for example, is helping to improve the U.S. housing market, with recently released data showing declines in the levels of negative and insufficient equity. As a result, true market values are beginning to meet or exceed the expectations that homeowners have for the value of their properties, encouraging them to sell and, therefore, reduce pent-up supply in the market today.
Here’s what I think is happening in the housing market: more buyers than sellers + low mortgage rates = rising prices.
If you – or somebody you know – are considering buying or selling a home and have questions about the market and/or current home prices, feel free to contact me on 617.834.8205 or Andrew.Oliver@SothebysRealty.com.
Andrew Oliver is a Realtor with Harborside Sotheby’s International Realty. Each Office Is Independently Owned and Operated
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