Happy August everyone (or shall we say Fogust?). The real estate market and mortgage rates continue to keep all of us in related fields scratching our heads. So if you are confused…not to worry. It’s not just you. Let’s dive right in and take a look at what’s going on in our local area.
Remember, every buyer and seller’s situation is different and personal. Is it the right time for you to buy or list your property? Give me a call and let’s assess together. I will provide you accurate and relevant data so you can make the most informed decision possible.
Real Estate News and Market Trends
July numbers are in. Here’s the scoop:
Affordability constraints have continued to limit home buying activity this summer with mortgage rates wobbling back and forth in the high 6’s and recently hitting 7% again leading many prospective buyers to put their home purchase plans temporarily on hold.
Higher rates have also kept many existing homeowners from listing their homes for fear of giving up the low-rate mortgages they locked in a few years ago, when rates were significantly lower. This fuels our ongoing limited inventory issue.
Despite a drop in existing-home sales, home prices have remained near record highs and limited inventory has boosted competition among buyers, putting upward pressure on sales prices, especially in more affordable markets and highly desirable markets (like North County SD), where competition for
homes remains particularly strong.
* Note two images…one for detached homes in North county, SD and the other for attached (condos and townhomes). If you would like specific cities or zip codes reach out to me for a more tailored synopsis.
Mortgage rate update:
Still a bit of a rollercoaster in mortgage rate land. We were moving lower a few weeks ago and then popped back up to above 7% early August. End of last week we were down to 6.75% and as of yesterday we are back up to 7.15%!
Buyers are adjusting to this new rate norm and we’re starting to see those that are tired of sitting on the fence move forward with purchasing plans. Date the rate, marry the house. You can always refinance when rates drop. But remember…if rates do go down (and we’re not certain they will go that much lower) you will also be joining all the buyers that have been waiting to purchase this last year which COULD increase home prices again.
*No points purchased. Rates are based on 30 year fixed with excellent credit score and 20% down. This is an estimate. Rates may vary.
There you have it. Data driven market insights with real numbers. If you’re considering buying or selling in teh next 9 months or so, give me a call and let’s get started!