All year long has felt like a red hot summer for the housing market. Prices surged in unprecedented ways, demand for housing hit all-time highs and sellers were seeing record profits. But according to experts, a cooling Autumn is headed our way.
“The fever in the housing market has broken,” said Ali Wolf, chief economist of building consultancy Zonda. “There have been buyers that have just been beat down for the last six months.”
More homes are expected to hit the market in the next few months which should help buyers who have faced bidding wars and tough competition. The conclusion of the over-heated housing market could also help buyers retain contingencies like appraisals and inspections which have been waived more frequently in an attempt to win over the competition.
Although experts don’t anticipate a complete shift to a buyers’ market, they note that some of these forecasts are a step toward circumstances that are a little more balanced.
Meanwhile, conforming no-point 30-year fixed mortgage rates are averaging 2.75 percent and 15-year rates are near 2.00 percent.
Do you have a question for Real Estate & Mortgage Analyst Mehran Aram? Submit your queries about a home purchase, refinance, or reverse mortgage via Aramco.biz, social media (#AramcoReport), or over the phone at (866) 381-8888 and your questions may be featured in an upcoming article.