New Rules Set to Shake Up Real Estate Market
The National Association of Realtors (NAR) massive real estate settlement that changes the way homes are bought and sold goes into effect on Saturday, August 17. FOX Business’ Katrina Campins joined LiveNOW from FOX to break down how the new rules could impact the housing market.
Home Sales Slow Down
Sales of previously owned homes unexpectedly fell last month, slowing to a pace not seen since 2010, when the U.S. was still recovering from a housing market crash. The National Association of Realtors (NAR) on Wednesday reported that existing home sales declined 1% in September from the prior month to a seasonally adjusted annual rate of 3.84 million, which is a 3.5% drop from one year ago.
Home Prices Rise
At the same time, the median sales price of existing homes jumped 3% from last September to $404,500, marking the 15th consecutive month of year-over-year price increases, the NAR said.
Rising Mortgage Rates and Home Prices
The inventory of unsold existing homes, which includes single-family homes, townhouses and condominiums, rose by 1.5% in September from the prior month to 1.39 million.
Experts Weigh In
NAR chief economist Lawrence Yun attributed the decline in existing home sales to a combination of factors, including rising mortgage rates and home prices, which have pushed the prospect of a home purchase out of reach for more Americans amid an affordability crisis.
Why Mortgage Rates Are Going Up Despite the Fed’s Interest Rate Cut
Holden Lewis, a home and mortgage expert at NerdWallet, echoed similar sentiments, saying, "Mortgage rates have been rising steadily for a month as the job market remains robust. Meanwhile, the median home price has exceeded $400,000 for six straight months. Rising mortgage rates and high home prices are ganging up on would-be homebuyers who struggle to find homes they can afford."
Conclusion
The new rules set to come into effect on August 17 aim to shake up the real estate market, bringing about changes that will impact the way homes are bought and sold. While some experts predict a slowdown in sales, others forecast a bright future for the real estate market, with more inventory and lower mortgage rates on the horizon. As the market continues to evolve, one thing is certain: the rules have changed, and homeowners and buyers alike must adapt to the new landscape.
Frequently Asked Questions
Q: What are the new rules set to affect the real estate market?
A: The National Association of Realtors (NAR) massive real estate settlement, which goes into effect on August 17, changes the way homes are bought and sold.
Q: What is the current state of the housing market?
A: Home sales have slowed down, with a seasonally adjusted annual rate of 3.84 million, a 3.5% drop from one year ago. The median sales price of existing homes has jumped 3% to $404,500.
Q: Why are mortgage rates rising?
A: Mortgage rates have been rising steadily for a month as the job market remains robust. This has made it more challenging for would-be homebuyers to find affordable options.
Q: What are the implications of these new rules?
A: The rules will bring about changes in the way homes are bought and sold, potentially leading to a slowdown in sales or a brighter future for the real estate market, depending on one’s perspective.
