Home Sales Are Finally Picking Back Up

Real estate plays a significant role in the economy. It affects homeowners, renters, buyers, and sellers. So, it’s worth paying attention to signs of improvement. 

After a long stretch of sluggish activity, there are early indications that the housing market may be finding its footing again. Most recently, home sales rose meaningfully, marking the strongest reading in nearly three years. 

One month doesn’t make a trend, and it’s far too early to declare a full recovery. But it is a step in the right direction for a market that has been constrained by affordability challenges and limited supply. 

A big part of this improvement likely ties back to mortgage rates, which have drifted lower from their recent highs.  

Rates don’t need to return to pandemic-era levels to help. Even modest declines can still improve affordability at the monthly payment level and unlock sidelined demand. 

For this to turn into a sustained recovery, both rates and housing supply will need to normalize further. Still, after a long period of stagnation, seeing signs of life is encouraging. 

Happy Planning, 

Alex 

This blog post is not advice. Please read disclaimers.