Welcome to my Midweek Property Pule Post on my blog where I’m dedicated to providing you with the latest news and insights on the real estate industry. As a mortgage loan originator, I am your host and guide to navigating the complex world of real estate. Whether you’re a first-time homebuyer or an experienced investor, my blog is designed to help you make informed decisions about your real estate investments.
Here’s a brief summary of the latest news in the real estate industry as of August 30, 2023:
Real Estate Industry News
- The real estate market remains in a state of flux, grappling with uncertain pricing dynamics. Transaction volume has seen a significant drop in the first half of 2023, marked by a 40% decrease in deal count and a 65% decline in aggregate sales volume compared to the same period in the previous year. This decline underscores investor caution 1.
- Fannie Mae economists predict that the housing market will be stuck in a rut for a long time even if we avoid a recession. That’s because mortgage rates are set to stay elevated if we avoid a recession. Even if we do tip into recession, tight financial conditions will still weigh on home sales 2.
- The National Association of Realtors (NAR) has released its latest foot traffic report for July 2023. Nationally, Sentrilock home showings were down 4% year-over-year. Showings declined in three of the four regions of the U.S 3.
- According to PwC’s Emerging Trends report, the real estate industry is moving beyond what it perceives as cyclical headwinds — i.e., rising interest rates, declining gross domestic product (GDP), sinking deal flows — and taking a long-term approach to real estate assets. The mood among the real estate professionals interviewed for this year’s Emerging Trends is cautious optimism 4.
Takeaway
The real estate market is experiencing uncertainty with transaction volume dropping significantly in H1 2023 compared to last year. Fannie Mae economists predict that even if we avoid a recession, tight financial conditions will still weigh on home sales.
Here are some references for further reading: 2: Housing Market: Downturn Will Last for a Long Time, Fannie Mae Says1: 2023 real estate industry outlook – RSM US 3: Research and Statistics – National Association of REALTORS® 4: Emerging Trends in Real Estate 2023 – PwC
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