In the latest market news, the dynamics of the housing sector have seen some interesting fluctuations. Here’s a comprehensive update for September 2023, shedding light on the notable trends and patterns.
Slowing Sales of Existing Homes Among September 2023 Market Update Insights
For the month of July, sales of existing homes experienced a slight dip from their June figures. When compared to the previous year, the sales pace was down by a significant 17%.
This marks the slowest sales pace for the month of July since 2010, emphasizing the changing landscape of the housing market this year.
Inventory Levels Lower as New Home Sales Rise
The market’s inventory levels have presented another area of interest in our September 2023 Market Update. Standing at a mere 3.3-month supply on a national scale, the inventory levels remain well below the typical 6-month supply that usually indicates a balanced market. Furthermore, these figures represent a 15% decrease from the same time last year.
On a brighter note, new home sales for July have shown promising growth. These sales unexpectedly rose by 4% from June, hitting their highest level since February 2022. This indicates a whopping 32% increase from the same period the previous year. The scarcity of available existing homes seems to be driving more buyers toward new constructions.
Mortgage Application Volume at Historic Lows
The September 2023 Market Update also brings attention to the mortgage sector. Higher interest rates have pushed mortgage application volumes to touch their lowest in nearly three decades. Data from the Mortgage Bankers Association (MBA) has shown that purchase applications have fallen by 30% compared to last year.
Similarly, refinance applications have seen a decrease of 35% from a year ago. A trend worth noting is the growing inclination of buyers towards adjustable-rate mortgages, seemingly in an attempt to procure more favorable monthly payments.
Looking Beyond the September 2023 Market Update
To conclude, the September 2023 Market Update highlights several significant shifts in the housing market. While existing home sales and mortgage applications are seeing a decline, new home sales are witnessing a surge, offering a glimpse into potential future market directions.
For additional insights into the Chicagoland real estate market, contact the title and escrow specialists at Plymouth Title Guaranty.
Information accredited to MBSQuoteline.