Academy Mortgage Provides Insight into Current Market Conditions
Academy Mortgage, one of the top independent purchase lenders in the country, is excited to see the housing market continue to strengthen and stabilize. As reported by Clear Capital, a valuation solutions provider, home price appreciation is slowing, bringing the market closer to its norm.
Clear Capital reported that home prices are expected to increase 3.9 percent in the second half of the year compared to the first. While we have been seeing double-digit price growth, this shows the market is continuing to move towards long-run historical levels.
Clear Capital’s Vice President of Research and Analytics, Alex Villacorta, says that one thing the company is waiting on is to see if home prices fall into their “historical sweet spot” or if they will continue to remain lower than the historical norm.
The country’s housing market is working its way towards finding a healthy balance, and easing home prices aren’t the only indication. The U.S. Census Bureau reported that construction spending rose slightly in May compared to April, but that it is expected to continue increasing as the buying season is in full swing across the country and demand for homes remains strong.
However, one change that experts are currently seeing is the housing market’s reliance on the economy’s strength, when historically that reliance has been reversed. According to Nela Richardson, chief economist at Redfin, the housing market is what usually leads a lagging economy out of a downturn, but now, the housing market needs the economy to pick up so that consumers feel safer making such a large investment.
Depsite all of the changes currently being seen in the market, one thing that all experts can agree on is that now is still a great time to enter the housing market, especially in Atlanta. Home prices are still rising, although slower than before, and interest rates remain at historical lows, making it the perfect time for many buyers to invest in a new home.
If you are considering a new home purchase, contact Academy Mortgage today to begin your loan approval process by calling 404-574-2600 or visit www.AcademyMortgage.com.
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