At the Chernov Team, we like to stay up to date on the real estate market both here in Studio city, and nationally. Unfortunately, the most recent information suggests the housing market may be slowing down. Several recent economic data reports have suggested that the current housing cycle may be in for a temporary lull.
Of note, the overall home sales dropped under 6 million in the month of July, which represents its lowest mark in nearly 2 years. Specifically, the vast majority of overall home sale is comprised of previously owned homes, which had declining sales over the last 4 months.
Most individuals in the housing industry have been locked into building new homes for sale (“new construction”) because a significant number of homeowners are not selling; they appear to be intent on remaining in their current homes for an extended period.
The silver-lining to the unfortunate data regarding previously owned homes is that the new construction industry has seen its highest number of new homes available for sale in approximately 9 years. Analysts believe that it would take approximately 6 months to purchase all available homes, assuming the rate of new home purchases continues at its current rate. Analysts further note that a 6-month marker is generally an indicator that there is a healthy supply and demand balance of new construction homes.
There are a myriad of factors that effect the overall health of the American economy and, by extension, the American housing market. Many speculate that the rate of sales is stagnating because of increasing rates from lenders, paired with the increasing cost of homes. Others speculate that considering new tax laws, it is becoming increasingly important to determine whether owning a home is worth it financially.
This article is not meant to cause our readers alarm, the housing market ebbs and flows; it is perfectly natural for the market to stagnate briefly. Here at the Chernov Team we know that the person who comes to the table most prepared leaves with the most, and the Chernov Team always leaves with the most. If you are looking for a team that is more than just a pretty face, a team with industry-specific knowledge and a pretty face – contact the Chernov Team today.