Home prices are rising in many U.S. markets, but headwinds from winter storms, tight inventory, tough credit standards, and rising mortgage interest rates continue to hold back sales.
Mortgage interest rates are still very low and home buyers are aggressively looking for the dream home. It’s extremely important to not test the water with lowball/offensive offers once you have found the perfect home. Some sellers take offense to lowball offers and tend to favor other offers.
A lack of houses for sale continued to lift home prices in much of the country, but also pushed down the number of existing homes sold in January, data from the NATIONAL ASSOCIATION OF REALTORS® shows.
The weather wasn’t helping either. “Disruptive and prolonged winter weather patterns across the country are impacting a wide range of economic activity, and housing is no exception,” said NAR Chief Economist Lawrence Yun. “Some housing activity will be delayed until spring.”
He also blamed slower home sales on headwinds created by tight credit, limited inventory, rising home prices, and higher mortgage interest rates. “These issues will hinder home sales activity until the positive factors of job growth and new supply from higher housing starts begin to make an impact,” Yun said.