When considering the right time to buy or sell a home, an important factor in the decision should be the market’s overall health, which is largely a function of supply and demand,” First American Chief Economist Mark Fleming said. “Knowing how close the market is to a healthy level of activity can help consumers determine if it is a good time to buy or sell, and what might happen to the market in the future.”
The May 2018 Potential Homes Sales Index is under-performing its potential by 4.7 percent or an estimated 289,000 (SAAR) sales, but the market performance gap has decreased by an estimated 36,000 (SAAR), suggesting that minimal improvements are taking place.
Like Realtor.com Chief Economist Danielle Hale said after last week’s Fed announcement, buyers would be smart to take advantage of the small bump in inventory.
“Home-buyers who have been able to take advantage of the uncertainty to lock lower rates are likely to be satisfied with their decision,” Hale said. “In spite of ongoing record-low inventories in the housing market, we know that 557,000 new listings hit the market in May, the highest number since summer 2015.”
“These new listings may be just the opportunities home-buyers need to find and close on a home,” she added.
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