The U.S. housing market may be starting to taper off in comparison to the strong growth of the last several months, according to a new survey by Campbell/Inside Mortgage Financing HousingPulse. The survey involves approximately 2,000 real estate agents nationwide.
The data showed a slower growth rate in all categories of home sales: first-time homebuyers, current homeowners,
and investors. Investors fared the worst, with their business traffic registering below what the survey considers a “flat” level. Investors appear to be fueling a slide in the sale of distressed properties as well.
“The HousingPulse Distressed Property Index, a measure of distressed properties as a share of total home purchase transactions, fell to 25.4 percent in August, based on the three-month moving average,” the report said. “That was not only down from a distressed property share of 35.8 percent seen as recently as last March, but also the lowest level ever recorded by the HousingPulse survey.
“The market is slowing dramatically following the increase in interest rates. Numbers in October/November will start to show the price plateau and sales volume decline,” reported one real estate agent from California.
“Even with the slowdown in traffic, both current homeowners and first-time homebuyers groups are still posting relatively strong traffic numbers,” the survey concludes.