Government
agencies and also our local MLS report that existing home sales (closings) fell
in January for the third straight month. I believe the main cause of this to
be a function of low supply. A secondary, although far lesser cause, can likely
be tied to the rise in interest rates we all experienced at the hands of the
Federal Reserve Board last year. (Of course, rates are still at historically
low levels!)
The rate increases, coupled with rising home prices, began to
bring affordability discussions into the mix around mid-year. Since that time
however, interest rates have actually dropped, making home ownership a bit more
affordable than in late 2018 and bringing more buyers back into our typically
busy spring market.
I have several buyers
ready to purchase as soon as the right home comes onto the market. If you have
been considering selling, you have not missed the boat by any means. Here’s
where the news gets better: Year over year inventories are up now for the 6th
month in a row. This will boost sales as buyers will have more homes to see and
to choose from. If there is a downside to the rise in inventory, it could be
slowing price growth. And while slowing price growth is not the absolute best news
if you are a seller, it is still growth. Most important to note is what may not
be gained the result of a “highest bid” market when selling, will be saved when
purchasing up (or down) into that same market. It’s all relative and always has
been.
If you are considering buying or selling Real Estate this year, give me a call. I'm always happy to help!
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