Wow, what a volatile 3 years it’s been since the COVID pandemic. March 2020 started a real estate tornado that only slowed almost to a halt by rising interest rates. From a low of 3% +/- to a high of almost 8% in 2023, Buyers & Sellers are completely confused. How to read all this mixed messaging?
The current national mortgage rates are in the chart below. Compare that to the next image of rates since Jan 2020 to now. Notice that nice dip at the end of 2023? Whew!
What does that mean?
If you were to sell a home at $400,000, this is what the Buyer would see as mortgage options with the above rates in mind.
What if a Buyer has a monthly cost ceiling?
If a Buyer could only pay $2,400/mo. PITI, this is what they may see as options with mortgage rates.
How did this affect home sales ?
As the November chart shows, the Closed Price of homes had to decrease to allow homebuyers to qualify for the purchase at the higher rates. The market corrected from the inflated high prices from the last 2 years and it appears as though with the lower rates now in effect, the market is starting to see home prices stabilize. This could lead to slightly higher prices when the traditional Spring housing rush starts.
Here are a few market reports from counties I serve my clients in, from November 2023. Listed also are comparisons to the same data from that time last year. The next reports should show the improvements talked about above. Fingers crossed!
If You Are Even Considering Buying Or Selling
Now is the time to talk. Let's get a game plan together and assure that you're educated on the market. I want to be educated on your particular needs, as well. This will make all the difference in a successful transaction.
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