If you need assistance, please call 520-247-8250

24 Hours that Suddenly Improved the Market

Thursday, December 27, 2018   /   by Traci Roberts Jones

24 Hours that Suddenly Improved the Market

This year started strong for real estate, but then the market began to soften. Home inventory in the starter and move-up categories dwindled to almost nothing, mortgage rates were projected to rise, and home sales had decreased for several months in a row.


To many, the outlook heading into 2019 appeared dim… at best.


Then, in a 24-hour window last week, things seemed to change. On Wednesday, the National Association of Realtors’ (NAR) revealed in their Existing Homes Sales Report that home sales had INCREASED for the second consecutive month. The next day, NAR’s economic research team announced that the percentage of first-time buyers in the market was higher than last month and even higher than a year ago.


What happened to turn around the downward momentum in the market? 


You only needed to wait a few hours to find out. On the heels of NAR’s revelations, Zillow released their November Real Estate Market Report that explained:



“After nearly four years of annual declines in inventory, the number of homes for sale has now increased year-over-year for three straight months…”



Ending 2018, we now know two things:



  1. Listing inventory increased over the last three months

  2. Home sales increased over the last two months


Maybe a lack of inventory was the major challenge all along.


But, what about those pesky interest rates?


Last Thursday (the day after all of the above news), Freddie Mac announced that mortgage rates did not increase but instead decreased…again. From their release:



“The response to the recent decline in mortgage rates is already being felt in the housing market. After declining for six consecutive months, existing home sales finally rose in October and November and are essentially at the same level as during the summer months. 


This modest rebound in sales indicates that homebuyers are very sensitive to mortgage rate changes – and given the further drop in rates we’ve seen this month, we expect to see a modest rebound in home sales as well.”



Bottom Line


Will 2019 start out better than many have predicted? Perhaps, but we’ll have to wait and see. Things do look much better today, though, than they did just a month ago.

Keller Williams Southern Arizona - Jones Real Estate Team
Traci Roberts-Jones
10445 N. Oracle Rd., Ste. 220
Oro Valley, AZ 85737
520-247-8250


Nova Home Loans
Ian Brannon
3430 E. Sunrise Dr. Suite 150
Tucson, AZ 85718
520-837-9949
NMLS#205989

The data relating to real estate listings on this website comes in part from the Internet Data Exchange (IDX) program of Multiple Listing Service of Southern Arizona. IDX information is provided exclusively for consumers' personal, non-commercial use and may not be used for any purpose other than to identify prospective properties consumers may be interested in purchasing. Listings provided by brokerages other than Keller Williams Southern Arizona are identified with the MLSSAZ IDX Logo. All Information Is Deemed Reliable But Is Not Guaranteed Accurate. Listing information Copyright 2019 MLS of Southern Arizona. All Rights Reserved.