The second report, from the U.S. Census Bureau and the Department of Housing and Urban Development, found that new residential sales increased in May. The seasonally adjusted annual rate of new home sales rose to 696,000 in May, up from 636,000 in April. This was the highest level of new home sales since November 2021.
So, what do these two reports mean for real estate agents?
The increase in mortgage applications suggests that there is still strong demand for housing. This is good news for sellers, who may be able to sell their homes for a good price. However, the increase in mortgage rates is also a factor to consider. Mortgage rates have been rising in recent months, and this could make it more difficult for some buyers to afford a home.
The increase in new home sales is also a positive sign for the housing market. This suggests that there is still a healthy demand for new homes, even as the market for existing homes has cooled somewhat.
Overall, the latest reports suggest that the housing market is still in a good position. However, there are some factors to watch, such as the rising cost of mortgages. Real estate agents should be prepared to help buyers and sellers navigate these changes.
Here are some additional thoughts for real estate agents:
- Be prepared to answer questions about rising mortgage rates. Buyers may be concerned about how rising mortgage rates will affect their ability to afford a home. Be prepared to explain how mortgage rates work and how they can impact a buyer’s monthly payment.
- Help buyers find homes that fit their budget. With rising mortgage rates, buyers may need to adjust their expectations for what they can afford. Help buyers find homes that fit their budget and their needs.
- Be patient. The housing market is still competitive, but it may be starting to cool. Be patient with buyers and sellers as they navigate the market.
The housing market is constantly changing, so it’s important to stay up-to-date on the latest trends. By understanding the latest reports, real estate agents can be better prepared to help their clients navigate the market.