Home sales and prices may have taken a dip in August, but one industry player argues it’s a good thing for the industry.
“A lot of people are wondering about the dip and I see it as a seasonal thing,” Jason Duffy, a senior mortgage advisor with Residential Lending in Colorado told Mortgage Professional America. “I think it will still be a good market and I think most in the industry would agree it’s a good thing the market hasn’t continued on the torrid pace it’s been on.”
Following three months of consecutive gains, existing home sales fell in August, according to the National Association of Realtors.
Existing home sales dropped 4.8% to a seasonally adjusted annual rate of 5.31 million last month.
"Sales activity was down in many parts of the country last month — especially in the South and West — as the persistent summer theme of tight inventory levels likely deterred some buyers," Lawrence Yun, NAR chief economist. "The good news for the housing market is that price appreciation for the last two months has started to moderate from the unhealthier rate of growth seen earlier this year."
However, originators have nothing to worry about, according to Duffy who says the market has room for even more price moderation.
“(Price moderation) is healthy,” he said. “If price gains continue at the torrid pace they’ve been on it could eventually lead to a correction and the longer it goes the more significant the correction.”
The latest housing numbers are in, and one broker sees the silver lining in the drop in sales.