While the number of new listings slowed down somewhat in August, inventory levels continued to rise. We are still moving towards a more balanced market, where sellers are no longer holding all the cards. Rising interest rates have yet to really have a material impact on pricing, but it sure feels like the meteoric rise we saw over the last 18 months is a thing of the past. With our peak transaction season rapidly approaching, market direction remains uncertain.
As the Pandemic housing boom fizzled out across the country this summer, we saw inventory jump. In bubbly markets, like Austin and Boise, that inventory jump was greater than 300% between March and August. However, that inventory spike is already fizzling out.
Mortgage interest rates have risen sharply over the last 30 days. The recent change will cost new borrowers over $56 per month for every $100,000 borrowed. Average U.S. interest rates for 30-year fixed rate mortgages were at 6.02% as of this week. Last month at this time, they were sitting at 5.13%.
After nearly two years with sellers having the upper hand, buyers finally have another chance to purchase the home they always wanted (even with higher mortgage rates). Indicators that highlight the bright side to this cooling market include:
Not all are created equal. Here are some that just might not pay off.
