You wouldn’t know it by the data that we are in what is usually our busy season. With buyers and sellers down on 30-year mortgage rates that are in the high 6% to lower/mid 7% range, it is no wonder that our market is down. You have sellers who do not have to move and are locked in with rates as low as 3%, this explains our new listing inventory for the month of June which was down 26% from a year ago with only 5,462 new listings coming to the market. With current rates, it is also causing a pause with cautious buyers and hence why our closed volume in what should be our peak season is down 20 percent with only 4,266 homes sold and the median closed price is down 2% from a year ago.
So what is the silver lining for those looking for it? Mortgage interest rates may be heading for a slow, gradual decline by year end with experts weighing in that rates by year end could be as low as 5.25%. If rates fall over the last half of this year, it could spark a frenzy of activity, especially in the last quarter. Sellers would feel more comfortable deciding to list their homes and move and buyers currently sitting on the sidelines might be intrigued to enter the market. If this happens with our current low level of inventory it could send home prices higher. So, right now could be a great time to sell/buy if you have a need to move and your risk tolerance for the possible upside in the last quarter of the year outweighs waiting. Be sure to check out my next article on mortgage interest rates where I will look at this in a bit more detail. Contact us today for a no obligation consultation.