Monday's Main EventGet a jump on your week with the latest in local
Real Estate Market trends, Mortgage Rates, and Local Happenings |
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| ... If you've been waiting for prices to come down, the wait is over... |
| If you've been considering selling, but have been putting it off, what are you waiting for?? |
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July 2023 - Month To Date |
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Closings in July are down DRAMATICALLY from last year. With one week left in the month, there's a lot of ground to make up; but, the last week of July is historically a busy week for settlements. Both Resale and New Construction are having an equally tough month; with New Construction down slightly more than it's Resale counterpart.
Similarly, there's been a significant shift in homes sold above or below their original list. This shift seems to be coming from aging inventory in the 60-90 Days on Market segment. While it still represents about ~15% of the market, the discount amount on homes with at least one reduction is nearly 10%, indicating Sellers are getting more anxious. While this isn't the case everywhere, it is a strong sign of a shift to BUYERS market. |
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BUYER ALERT!!! The number of active listings that have reduced their price already continues to climb. Now at 45% of the total Active inventory, 276 homes are discounted 8.3% on average. This is a full percentage point higher than two weeks ago. On a $750K home, that's an additional $7,500 of a reduction.
New listings are following suit with sales, down about 50% from last year, month to date. A few months ago we saw more than 50% of the homes coming on the market in a month, selling in that same month. Now, July is only 34% for the same metric. That means inventory will sit longer and will need to be discounted to sell. Sellers should be very careful when putting their homes on the market because buyers are becoming pickier and are gaining more control. With one week to go in July, it'll be interesting to see how close to that 50% benchmark the market gets. |
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Interest rates came down a little bit last week, so that made me curious to look at the last 12 month trend. While rates are up almost 1.5 percentage points from a year ago, they aren't quite at their highest in the last 12 months. What we saw in higher interest rates in October and November last year resulted in fewer Closings in November-January (roughly ~38% drop in closings year over year). That drop started pushing rates down about .5% December - May. So, it stands to reason that we'll see something similar happen based on July's trend.
"Marry the House, Date the Rate", as they say. |
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To sum it up...
BUYER, BUYER, BUYER.. ARE YOU READY???
With homes sales slowing drastically, it's time for the price conscious buyer to get their duck lined up and ready to take advantage of some deep discounts.
Almost 40% of the inventory on the market 60 days or more is already discounted nearly 10%. That's more than 200 homes that are "MAKE ME AN OFFER" -ready.
If recent history is a looking-glass to the future, we should start to see mortgage rates come down again, so now's the time to lock in a great price, with great terms, and have 6-8 weeks of rate reductions (hopefully!) before locking in on a lower mortgage.
Click Here to start your home search, today! |
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Equity provides financial flexibility, as you can use it to pay down debt, cover unexpected expenses or invest in other financial opportunities. Moreover, it can be an essential factor in retirement planning, as your home equity can be a source of income or a means to downsize.
Read More Here
Content Courtesy of Forbes.com: https://www.forbes.com/advisor/mortgages/9-ways-to-build-equity-in-your-home/ |
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