We’re going to jump right in with our first topic of what’s happening in the current housing market. Interest rates are dominating right now. This chart shows Freddie Mac 30-year fixed rate from January all the way through to the latest data we have today, and what we can see over time is that mortgage rates really ticked up week after week after week, potentially peaking right around the mid-end of June. Now we’re seeing a lot of volatility. We are today, a little bit lower than where we were about a month ago, but we’re still watching them. the fear of recession comes into the conversation.
Whether or not we’re in a recession right now is currently up for debate and we’re not going to get into that debate here. We we will say is a recession does not mean falling prices. As we’ve stated in previous market updates four out of the six past recessions saw home prices appreciate. As you can see in this graph, a recession also means falling mortgage rates. So this could be really good news for the housing market, especially those buyers who have maybe been paused in the process or stepped out of the home buying process because they’ve been priced out by high mortgage rates.
Another question on everyone’s mind is are we heading for another housing crash. The simple answer to that is no. If you think back to the last time when the housing market crashed in 2008, we had an oversupply of homes on the market, and today we have an under supply. Lending standards have also stayed more strict than they were during the housing crash of 2008. Foreclosure rates are also much lower than in 2008 due to the increased equity and the forbearance programs that were offered during the pandemic.
There are three things that are happening right now that are creating a great scenario for buyers. We’re seeing fewer multiple offer scenarios. That is a trend that we are seeing going forward. We are also seeing fewer homes selling above asking price. It’s still a very competitive market but a better time for buyers to jump in if they’re ready to find a home and supply of homes for sale is growing. You can also see that month’s of available inventory is ticking up as the pace of home sales slows and more homes came back to the market.
So What Does This Mean For Buyers
Sales are slowing and the average list price has fallen slightly since last month. Average days of market are also increasing and the average sales price stayed consistent from last month. This is good news for buyers. If you have stepped out of the market, it might be time to step back in.
So What Does This Mean For Sellers?
To the sellers out there the market has begun slowing and we have reached the peak. If, you are thinking of selling now is the time.
Whether you are looking to buy or sell, First Coast Realty would welcome the opportunity to earn your business. Feel free to reach out to us on Facebook or Twitter and we would be happy to assist you in getting the ball rolling. Or, to talk to a qualified, experienced agent call/text today 904-494-8408 or email firstname.lastname@example.org