Mortgage rates were already under quite a bit of pressure on Friday following the stunningly strong jobs report released on February 3rd. Strong economic data is generally bad for rates, because this data impacts decisions made by the Federal Reserve.
A strong labor market sends a message to the Fed that it can continue to raise rates aggressively to fight inflation without worrying about the broader economic impacts.
So what impact are increased rates having on home sale prices in our area? At a glance, prices in our market have dropped ~2% a month since the last peak we experienced in June ’22 when the average home sold for $347,000. January just closed at an average sales price of $296,000. This represents a nearly 15% drop in average sales price, placing us firmly in Market Correction territory.
So what should a buyer or seller do with this information? If you’re a buyer should you be holding back, waiting for the market to bottom out? Can you get away with making lower offers?
What if you’re thinking about selling, have you missed your opportunity to cash in on all the appreciation you’ve accumulated?
There is not a one-size-fits-all answer to these questions. There are great homes coming on the market (and going under contract), every single day. There are real buyers and real sellers with real reasons coming together in this market—so if you have a real reason to make a move, we can help!