November 20th, 2013
Homebuyers are finally starting to see some response to their strong demand for available properties.
According to Bloomberg, there has been an increase in housing supply. Rising property prices are cooling down as homes spend more time on the market.
“Several homes I drive by on my way to work have had for-sale signs up for a couple months, while before, they’d be gone within a week,” Mike Imgarten, a prospective homebuyer, told Bloomberg.
Imgarten and other buyers have lost some of the urge to make impulse home purchases, and the market has responded with falling asking prices and an increase in the inventory of unsold homes.
“We are shifting from a frenzy to where buyers are taking a step back and being more analytical and unwilling to just make rash decisions,” stated Redfin economist Ellen Haberle.
Fixed mortgage rates have aided in slowing price appreciation. Freddie Mac’s most recent Primary Mortgage Market Survey found that the average rate for 30-year FRMs for the week ending Nov. 14 rose for the second consecutive week to 4.35 percent, up from 4.16 percent in the previous week.
As more buyers back off and make more informed decisions about the market, inventory will continue to even out with demand.