Zillow May Market report shows home values increased 1.4% April to May with the larges gains in the Midwest. West Coast markets have recovered from the price drops in 2022.

However, one third of home buyers expect home prices to decline. Inventory is at one of the lowest points in years.

The situation is further exacerbated by the proportion of borrowers with interest rates below 4.0%. Remarkably, 33% of FHA and VA borrowers currently benefit from rates below 3.0%. An astonishing 50.7% of VA borrowers also fall under the category of securing an interest rate below 3.0%.

From my perspective, I don’t foresee a decline in home values. Although inflation is gradually decreasing, it has not reached a point where the Federal Reserve would consider easing the Fed rate. Moreover, the inventory remains persistently low, with minimal or no incentives for it to increase.

Road Trip Monday and Tuesday so the blogs and videos will be short. Have a great weekend.