Here’s what you need to know about the latest housing news.
Today, let’s delve into the current state of the real estate market. Over the past 30 days, I’ve observed numbers that are quite remarkable, even in my more than 20-year career.
Active listings in the last month totaled 14,792 homes this year, compared to 21,838 last year, representing a 32% decrease in available homes on the market. Meanwhile, pending homes stand at 7,420 now, compared to 8,657 last year, marking a 15% decrease in homes with pending sales. Lastly, we’re projecting 73,728 homes to be sold this year, compared to 99,698 resale homes sold last year—a 26% decrease in resale homes sold.
“Interest rates may increase slightly soon. ”
The current market landscape is characterized by higher interest rates. Consequently, some buyers are facing challenges qualifying for mortgages, while others are contemplating whether renting might be a better option. However, in most cases, they could still secure a home with a lower mortgage payment than renting. On the other hand, some sellers are hesitant to make a move, given their locked-in lower interest rates.
What sets this market apart is the availability of homes to choose from, unlike a couple of years ago when multiple offers and bidding wars were the norm. Today, there are homes for sale, and we maintain about a two-month supply of inventory, which has been the trend for the past few years—low inventory. Nevertheless, we still experience robust buyer demand, with nearly 7,500 homes under contract, even as interest rates hover around 7%.
Recent job market reports indicate the possibility of the Federal Reserve raising rates again this month, but it’s intriguing to observe that homes continue to sell, and people are still relocating to the area. It’s not a bad market; in fact, I’d describe it as a normal market. We’ve been accustomed to an exceptionally hot market over the past 5 to 7 years, with homes flying off the shelves in a week with multiple offers. However, this current market presents a more balanced scenario.
Fannie Mae suggests that next year might bring some changes. So if you’re considering a move, this year could be an ideal time to make it happen. Please don’t hesitate to reach out with any questions or concerns. You can text me anytime at (602) 738-9943. I’m eager to hear from you soon.
