The media continues to bash the housing market, with some suggesting that a bubble or crash may be ahead due to waning demand, higher mortgage rates and higher home prices. However, MBS Highway’s latest Housing Index Survey shows that the housing market remains strong and the media has it wrong, again.
Earlier this month, MBS Highway surveyed over 3,000 mortgage and real estate professionals around the country regarding current housing market conditions. The results for the July 2022 release showed that 66% of respondents reported their market was still “active to very active,” while 33% still saw “moderate to significant” pricing pressure.
Of those who said activity was slower, many cited that this was due to a lack of inventory, rather than waning demand. In fact, many are still seeing multiple offers, albeit less than previously, which suggests that while buyer activity may be slowing, it remains strong. Demand is still outpacing supply, though to a lesser extent, which is in line with forecasts that homes will continue to appreciate in the mid to high single digits over the next year.
Other key highlights of the survey include:
37% reported that the pace of sales remained rapid with multiple offers, with 77% saying the sales pace ranged from normal (i.e., near asking price) to rapid.
Just 23% reported seeing a slower pace of sales with price reductions.
Buyer activity remained active to very active across the country, with readings ranging from the low of 60% in the West, which is still quite strong, to the high of 77% in the Northeast.
A normal to rapid sales pace also remained the norm nationwide, as readings spanned from 65% in the Northwest to 94% in the Northeast, with the Midwest and Mid-Atlantic also topping 90%.
The bottom line is that despite the repeated doom and gloom media headlines, this real-time data shows that the housing market remains strong this summer and housing continues to be a sound financial investment.