July Real Estate Trends - Discover the Latest Housing Trends in Brevard County

July 2023 Real Estate Trends

Making Sense of Housing Reports:

Understanding Housing Data: Unraveling the Median vs. Repeat Sales Price Conundrum
The realm of housing data can be perplexing, often presenting conflicting information. It's not uncommon to hear reports stating that home prices have risen, only to come across data indicating a decline in the median home price average. To navigate this confusion, it's essential to comprehend the disparity between the median sales price, as reported by the National Association of REALTORS® (NAR), and the repeat sales price utilized by other sources.
The Challenge of Median Sales Prices: The NAR calculates the median sales price, which represents the middle price of homes sold, with half of the homes selling for a higher price and the other half selling for a lower price. This approach can create confusion because if a higher number of lower-priced homes have recently sold, the median sale price would naturally decrease. In this scenario, the "middle" home is now a lower-priced home, even if the value of individual homes is actually increasing. It's crucial to understand that a decline in the median sales price doesn't necessarily imply a loss of value for any specific property.
Factors Influencing Median Price Fluctuations: When mortgage rates are higher, homebuyers often need to seek out less expensive homes to maintain affordability in terms of their monthly housing expenses. Consequently, a greater number of "less expensive" houses are being sold in the market, leading to a decline in the median price. However, this decline in the median price doesn't imply that the value of every home has diminished. Instead, it reflects a shift in the mix of homes sold, with a higher proportion of lower-priced properties changing hands.
The Importance of Context: To avoid misinterpretation, it's vital to consider the context and underlying factors when analyzing housing data. Median sales prices can be influenced by various factors such as mortgage rates, market conditions, and the specific mix of homes being sold. Therefore, it's crucial to delve deeper into the data and explore additional indicators to gain a comprehensive understanding of the market's dynamics.
Conclusion: Navigating housing data can be challenging, particularly when comparing median sales prices and repeat sales prices. The median sales price represents the middle price of homes sold and can fluctuate based on changes in the mix of homes sold, while repeat sales prices provide a more comprehensive view of value trends. By considering the broader context and understanding the factors influencing median price fluctuations, we can develop a more accurate understanding of the housing market's intricacies.
5 reasons we won’t see a housing market crash this year by Michael Gifford, CEO, Splitero "doomsdayers and naysayers are predicting a market meltdown of epic proportions. They’ve been doing so for quite a while, though. That either means they’re wrong, or we’re on the verge of something pretty scary. Although my crystal ball is in the shop, Michael Gifford dusted his off and took a look at the predictions of others as well, laying out an argument for a strong market in the months ahead."
Homeowners are reluctant to sell because many are locked into low-rate mortgages and don’t want to give up that rate to sell and repurchase a more expensive home with a higher mortgage rate.
Credit availability is exceptionally tight, and regulators removed faulty financial products.
Mortgage delinquency rates are low.
Home equity is at an all-time high which means foreclosures aren’t coming.
The housing market is starved for inventory.

Monthly Market Detail - May 2023

Brevard County Housing Statistics


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