A simplified explanation of the current housing market.

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Certainly! Let's break it down:

1. **Interest Rates**:

   - Interest rates play a crucial role in the housing market. They determine how much it costs to borrow money for a home purchase.

   - As of June 2023, more than 90% of homeowners had interest rates lower than 6%, and 62% enjoyed rates below 4%³.

   - Low interest rates encourage homebuying because they make mortgages more affordable. When rates are low, people are more likely to buy homes, which can drive up demand.

2. **Housing Inventory**:

   - Housing inventory refers to the number of homes available for sale in a given area.

   - In April 2024, the active listing count in the United States was around 734,318 homes¹.

   - An increase in housing inventory means more homes are available for buyers. This can lead to a balanced market where supply meets demand.

   - However, if inventory is too low, it can create a seller's market, where demand outstrips supply, leading to rising home prices.

3. **Overall Picture**:

   - Currently, home prices have been rising. The FHFA price index is up by 7.9% since its June 2022 peak, and the Case-Shiller index shows a 3.2% increase during the same period⁴.

   - The median existing-home price in the U.S. has topped $400,000 multiple times in 2024⁵.

   - So, we have a mix of low interest rates and increased housing inventory, but rising prices. Buyers should consider these factors when navigating the market.

Remember, this is a simplified explanation, but I hope it helps you understand the basics! 😊 If you have any more questions, feel free to ask!

Happy House Hunting!

Jennifer Delong, Realtor Front Porch Realty 870-275-5287 (Mobile) PB/Office: Lisa Loggains (870) 243-7222  .