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By the Numbers: October's Housing Market

Recent trends in the nation's housing market, such as rising interest rates, a lack of inventory, and low affordability, have together contributed to a minor slowdown over the course of the last several months. Although these issues aren't exactly fun, it is important to remember that they represent a needed correction to the unsustainably high rate of home price growth which had been ongoing in many cities across the country. With that being said, the National Association of Realtor's October report on existing-home sales reveals some reasons to be hopeful about the housing market's trajectory. Keep reading to learn about October by the numbers!

For Sale by Owner Transactions Fall to All-Time Low

Sellers sometimes decide to handle their home sale on their own in order to avoid paying a commission, a type of real estate transaction known as For Sale by Owner (FSBO). Of course, readers of this blog will know that FSBO generally results in little to no financial benefit for the seller, as the lack of commission is offset by a reduction in sale price. In fact, once you consider the significant amount of time and stress that goes into selling a home, hiring an agent for a neutral net profit seems like a no-brainer. Luckily, the 2018 edition of the Profile of Home Buyers and Sellers shows that home sellers are paying attention, as the proportion of FSBO transactions fell to a new record low this year!

Arkansas Averages Some of the Smallest Down Payments

Potential home buyers consistently regard saving for the down payment as one of the greatest barriers to buying a home, and who can blame them? Although the exact dollar amount required up front by the lender depends on the type of mortgage and purchase price, buyers generally need to come up with several tens of thousands of dollars in order to take out their home loan. Of course, as is true with any statistic, there is a wide range of averages observed across the nation's fifty states, and both down payment amounts and percentages follow this rule. With that in mind, LendingTree sought to determine which state's mortgage borrowers were offering up the largest and smallest down payments in Q3. They found that Arkansas buyers paid some of the smallest amounts up front, both in dollars and as a percentage.