Everything you need to know about rates and the current housing market.
If you’re thinking about entering the real estate market in any capacity, it’s essential that you stay updated on the latest market statistics. Things have been changing a lot lately, so you need to stay informed. Today, I am here with the numbers for the March 2023 market, and they tell us a lot about where things are heading.
First, there were 17,182 active homes on the market compared to 18,090 last month and 8,824 one year ago. Therefore, the available homes have doubled. Also, there are 9,262 homes currently under contract compared to 11,648 last year, which is a big drop. Therefore, we have fewer homes under contract but more inventory.
We are on pace to have 77,773 sales this year compared to 109,391 last year, which is a 30% decrease in homes sold. In addition, months’ supply of inventory is at two months, when it was at 0.5 months a year ago. To put that in perspective, a balanced market has six months, which means we are currently in a seller’s market still. However, that also means we should be seeing more multiple-offer situations, bidding wars, and prices going up, but we aren’t seeing that. That is because of rising interest rates.
“Fortunately, the market is still moving along.”
Rates are currently around 6.4% for a 30-year loan and 5.88% for a 15-year loan for the national average. If rates were like they were a year ago, around 3%, the market would be a lot different and there would be more buyers.
Since rates have risen, housing payments have gone up, which has affected buyers. However, the rates are low historically, so overall the market is still moving along. In truth, this is one of the better markets I have seen over the last 20 years. Many people think last year was a better market, but it was truthfully just a very hot seller’s market.
Even though the market is still moving, we do have to keep a careful eye on it in case something slows things down. One factor we need to pay attention to is the oil production being cut, which could affect inflation and gas prices, then have a trickle effect on other parts of the economy.
No matter what happens with the market, we will stay updated and keep you informed. If you are thinking about buying or selling a home, or know someone who is, don’t hesitate to reach out. You can call me all (602) 738-9943 or send an email to jason@thepenroseteam.com. I look forward to hearing from you soon!
