As we move further into the year, the housing market continues to evolve and present both challenges and opportunities for buyers and sellers. Let’s dive in and see what’s currently happening in the world of real estate!
Foreclosure Activity Shows Slight Decline Last Month
According to the latest report by ATTOM that was released on the 11th of May, the number of U.S. properties with foreclosure filings — default notices, scheduled auctions or bank repossessions — decreased by 10 percent in April. This comes as a welcome relief after the 20 percent increase in overall foreclosure activity last March. Rob Barber, CEO of ATTOM, noted that:
“Foreclosure activity continues to stabilize and even correct itself in 2023. . . While there is no apparent indication of a continued decline in the number of foreclosures, it’s important to note that the month of April typically exhibits a recurring trend of decreased activity. However, this trend underscores the significance of monitoring foreclosure rates and identifying any potential market shifts or trends.”
Housing Inventory Offers Hope to Buyers & Sellers
Despite a decrease in new listings compared to last year, the total inventory of both new and old listings has seen a significant 31 percent increase for the week ending May 6. This promising trend suggests a potential boost to the overall housing market, providing much-needed hope for both buyers and sellers. With more homes available for sale, buyers can take advantage of the opportunity to find the right property for their needs, while sellers may benefit from increased interest in their listings. According to Danielle Hale, chief economist for Realtor.com®,
“The housing inventory is evolving. While further moderation is needed, this is a welcome improvement that comes as new listings near their seasonal high point. Improvement now could have an outsized impact.”
Buyers Willing to Pay More for Energy Efficiency
According to the 2023 Payless Power Survey, house buyers are willing to spend an additional $50,000 for an eco-friendly home that saves on energy costs. The survey of over 1,000 Americans showed that with energy costs rising, many are looking for ways to reduce their reliance on energy providers. Additionally, according to the 2022 REALTORS® and Sustainability Report, about 60% of real estate professionals see value in promoting energy efficiency in listings, as sustainable homes not only save on energy costs, but also provide health benefits and may increase resale value.
Sources: ATTOM, Realtor.com®, and National Association of Realtors®
