After a slow summer for home sales nationally, experts say mortgage rate decreases signal an upturn in the housing market toward the end of the year.
Affordability is the main constraint on the housing market now.
Home prices increased dramatically during the COVID-19 pandemic and homebuilding has not kept pace with population growth.
But the average 30-year fixed mortgage rate has been below 7 percent since the first week of June, according to Forbes. The rate landed at 6.47 percent last week.
In Indiana, the average number of homes for sale increased from June to July, according to the Indiana Association of Realtors. June and July this year had the state’s highest inventory since 2020.
Zillow also reported that about 25 percent of its nationwide listings saw price cuts in June.
Home sale prices declined in June for Indiana but are still higher than last year.
The Zillow analysis says the market is still slowed by a lack of inventory, 33 percent lower than prepandemic levels.
One expert told Forbes they don’t expect to see supply increase until mortgage rates fall in the low 5 percent range.
In Indiana, suburban county home sales are performing better than urban core areas, which is consistent with national trends.
On this week’s Noon Edition, we’ll talk with realtors and experts about the housing market and factors influencing it.
You can follow us on X @WFIUWTIUNews or join us on the air by calling 812-855-0811 or toll-free at 1-877-285-9348. You can also send questions for the show to news@indianapublicmedia.org.
You can also record your questions and send them in through email.
Guests
Matt Kinghorn, senior demographic analyst at the Indiana Business Research Center
Juan Carlos Carrasquel, owner of The JuanSells.com Realty Co.
Tom Wininger, Wininger Construction, president and director of operations
