If you have been following the US housing market in Caledon and beyond lately, you have realized that it has set new records as home values hit an all-time high in July. They are valued at just under $350,000, according to Zillow. According to Greg Aziz, it is a 1.4% increase when you look at what happened in the recent year. It is the end of a far-too-long 16-month trend of stagnation.
According to housing expert Greg Aziz, a renowned housing market analyst, this is because of the never-ending shortage of housing supply. Though the current average mortgage rates are above 7%, the demand for housing is still vital because of the limited availability.
One thing to note, though, is that new listings have dropped by a significant 26% year-over-year in July. Moreover, active inventory has decreased by a whopping 44% compared to pre-pandemic levels. Greg Aziz suggests that we buckle up as we will most likely see these supply constraints go throughout the year, following historical trends.
Now, when it comes to regions- we notice a huge difference. The Midwest and Northeast regions are experiencing the most substantial house value growth. Greg Aziz adds that we see cities like Cincinnati and Milwaukee, with values soaring over 5%.
The South and West, however, are declining; take Austin, for example, 10.42% decrease, and Phoenix has a 6.11% dip. The housing and investment expert warns that this trend will not continue for much longer as we approach the beginning of the traditional seasonal slowdown. In July, pending sales dropped by 6.5% compared to June, Greg Aziz finally states. And though the sales dropped, the average time on the market increased. This shift is a plus for potential house buyers, as there is reduced competition, and pricing gets a bit favorable for them.