Posted by: The Tim

Tim Ellis is the founder of Seattle Bubble. His background in engineering and computer / internet technology, a fondness of data-based analysis of problems, and an addiction to spreadsheets all influence his perspective on the Seattle-area real estate market.

3 responses to “May Stats Preview: One Month Inventory Surge”

  1. Blake

    Not a good sign…
    “Lowest rates in a year do nothing for mortgages”
    … The low rates, however, were not enough to boost mortgage volumes: applications to refinance a loan fell a seasonally adjusted 3 percent on the week, and are down nearly 57 percent on the year, according to the mortgage bankers survey. Applications to purchase a home-a closely watched indicator of the housing recovery-fell 4 percent on the week and are 17 percent below year-ago volumes. This does not bode well for home sales as the market moves from the traditionally robust spring season to the slower summer months.

    “The lack of movement on mortgage applications even with a significant drop in rates confirms what we have seen for much of the past five years. Namely, that lower rates alone are not enough to generate home purchase activity,” said Guy Cecala of Inside Mortgage Finance. “Home prices, mortgage underwriting, employment, and a basic belief that it is a good time to buy home are major factors that seem to influence home buying more than rates.”

    … but perhaps Americans are getting smarter?
    “Reinforcing survey findings from 2013, attitudes about homeownership have shifted, with 43 percent indicating it is no longer the case that owning a home is, ‘an excellent long-term investment and one of the best ways for people to build wealth and assets,’ and more than half believing that buying a home has become less appealing than it once was,” according to the survey.

    While most Americans still aspire to home ownership, they do not believe it is the wealth-building vehicle it once was. That is perhaps why, when even the potential monthly mortgage payments move lowers, it is just not enough to get more buyers off the fence. “

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  2. Kary L. Krismer

    You’re slacking Tim! The real numbers are out. ;-)

    Active King County 4158
    Sold SFR 2,326
    Median SFR $442,250

    Quite the jump in active listings.

    Numbers from NWMLS sources, but not guaranteed.

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