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.
While the YoY sales drop mirrors the activity in Manatee, the YoY median sales price increase in Sarasota jumped quite a bit higher than Manatee (31% vs 21%). Cash sales dipped a bit in July from the over 50% in Sarasota in June. Also, new listings are not coming on as quickly in Sarasota as they are in Manatee. All of this leads me to believe that prices will be a little more stubborn in Sarasota than Manatee in the short-term. That said, it seems that every month now brings a material change in the market. As with every real estate transaction, both the buyer and seller have to take into account what is best for their unique situations when they examine any potential deal.