3 Graphs that Show What You Need to Know About Today's Real Estate Market

The Housing Market has been a hot-topic in the news lately.Depending on which media outlet you watch, it can start to be a bitconfusing to understand what’s really going on with interestrates and home prices!

The best way to show what’s really going on intoday’s real estate market is to go straight to the data! Weput together the following three graphs along with a quote fromChief Economists that have their finger on the pulse of what eachgraph illustrates.

Interest Rates:

“The real estate market is thawing in response to thesustained decline in mortgage rates andrebound in consumer confidence – two of the most importantdrivers of home sales. Rising sales demand coupled with moreinventory than previous spring seasons suggests that the housingmarket is in the early stages of regainingmomentum.” – SamKhater, Chief Economist at FreddieMac

Income:

“A powerful combination of lower mortgage rates, moreinventory, rising income and higherconsumer confidence is driving the salesrebound.” – LawrenceYun, Chief Economist at NAR

Home Prices:

“Price growth has been too strong for several years,fueled in part by abnormally low interest rates.A mild deceleration in home sales and HomePrice Index growth is actuallyhealthy, because it will calm excessive price growth— which has pushed many markets, particularly in the West,into overvalued territory.” – RalphDeFranco, Global Chief Economist at Arch Capital ServicesInc.

Bottom Line

These three graphs indicate good news for the spring housingmarket! Interest rates are low, income is rising, and home priceshave experienced mild deceleration over the last 9 months. If youare considering buying a home or selling your house, let’sget together to chat about our market!