Current Market Activity 📊

This is normally the time of year when we start to see more and more properties come to market here in the midwest. Our agent connections that are south of us are reporting a slight increase in new listings.  Their weather is ahead of ours, thereby their markets usually do see this change first,  however, they aren’t reporting an influx right now, and the third week of April is traditionally what brings the best combination of housing market factors for sellers.

This slower pace might be attributed to mortgage rates that have remained between 6.5%-7.5%.

Sellers that need to purchase a new home would be subjected to these rates when their previous (refinanced) rate can be much lower. Where this may not be a factor is for a seller that isn’t going to purchase a new property. (Perhaps they are transitioning out of their long time home and moving to a non-ownership residence) These seem to be the sellers coming to market right now, as well as those who have accepted these more normal rates and their life changes are dictating their moves elsewhere.

The first quarter saw ‘lower’ closed transactions in most markets.

👀 Looking Ahead 👇

We anticipate listings will increase, and as seen in our own day-to-day business, buyers are inching toward taking the plunge and are feeling more comfortable to start talking about property ownership, how to get there, and ready themselves for this spring market, or a future market.  Keep in mind ….If buyers aren’t willing to buy, and inventory swings to a more plentiful amount, it could result in a buyers market, and reduced sales prices.  There are many things that factor into a market, however, this is ‘good food for thought’.

Although rate cuts may still be anticipated, it isn’t known when, nor by how much.
Buyers:  Let’s say a minor rate cut is made – how much will it actually affect your monthly mortgage payment and closing costs in opposition to a possible increased cost of the property?  What do we mean? — If such a rate cut draws even more buyers to the market, this could lead to increased property values with many buyers vying for each property due to limited inventory. This could potentially erase any ‘value’ a buyer would get from a slightly lower rate.

Considering the sale of a property, or the purchase of one?
We have over 35 years of combined years in real estate – let us put it to work for you, and give us a call to talk possible strategies for your real estate needs.

Until next time…