July Housing Slump a Worry, Not a Woe, Says Commission Advance Firm

Commission Express, a real estate commission advance company, cautions brokers to plan for market cooling but not to fear a complete bust.

The United States Commerce Department reported a drop in home sales of 9.4 percent in July 2017. The results were well below expert predictions; economists had originally predicted home sales would rise by 0.03 percent over the month. It's an expectation that had as much to do with the season as with the market, so many economists report being flummoxed by the unexpected and fairly large downturn.

Many are pointing to the July numbers as an indicator that the housing marketing is beginning to cool, but it's not all bad news for real estate brokers and others in the niche. June and May sales were both revised up in the new report; June numbers appear to be at least 3 percent higher than previously reported, and it's possible that additional sales in the early part of the summer took some of the sales out of the July market.

From a supply and demand perspective, the housing market is still stable. At the pace of home sales noted in July, experts point out that it would take just under six months to clear existing market supply, and economists say a six-month inventory is considered healthy for this market. It is true that the balance might have been achieved in part because housing starts haven't been as robust as they could be due to construction and supply constraints. Even with a healthy economic balance, the house market is still short on properties from a buyer perspective, so there are fewer choices in many areas. July saw an increase of new homes on the market of 1.5 percent, but the total number is still much less than in 2009.

The lower number of properties on the market contributes to an increase in average sale price. While that can be good news for brokers when it comes to commissions, higher sales prices do start to limit the pool of buyers able to get into a new home.

Commission Express wants brokers to know that the housing market, while possibly cooling, is still healthy enough to support business. By working closely with buyers, keeping on top of borrowing options and partnering with commission advance firms and other professionals, brokers can maintain consistent cash flow and help match potential homeowners to great properties, even when national numbers slump.

Contact Info:
Name: Scot Small
Email: Send Email
Organization: Commission Express
Address: 8306 Professional Hill Drive, Fairfax, VA 22031
Phone: 888-560-5501
Website: http://www.commissionexpress.com

Release ID: 234852