Stay informed about current real estate trends and market shifts.
How are rising interest rates affecting the real estate market? Let’s talk about the numbers behind the current market trends and explain what they mean for both buyers and sellers.
In our current market, buyers with a 740 FICO score and 20% down payment on a single-family home can get a 30-year mortgage rate with a 7.5% rate. Due to high inflation and low unemployment, the Federal Reserve has kept rates high for now, which has an impact on your mortgage rate.
“These economic factors have directly influenced the rise in interest rates.”
So, how has this affected our current market? Let’s dive into the numbers. Active listings have seen a 22% increase year over year, with 20,000 active listings compared to 17,000 last year. On the pending side, we’re down 4%, indicating a slight slowdown in the number of homes under contract. In terms of homes sold, we currently have 7,000 homes sold compared to 7,500 last year, which is a 9.5% decrease.
Our supply of inventory has also changed. We now have a two-and-a-half-month supply of homes, up from a 1.8-month supply last year, representing a 39% increase in inventory.
What do these numbers mean for the real estate market today? Inventory is starting to build up, so there are more homes available on the market. Despite this increase, we’re still in a good seller’s market with a two-and-a-half-month supply. However, it’s important to remember that every area is unique.
If you’re looking to sell your home or have questions about the market, I would love to help. Call me, message me – I hope to hear from you soon!
