How are interest rates impacting the market? While it’s too early to tell the impact on prices in the medium to long term, we are seeing an increase in activity that suggests that the surge we see in the Spring and Summer months is over-coming the drag that increased interest rates are causing.
According to Global MLS, the marketplace for NY Capital District residential properties, here’s how April close compared to March close:
- The Number of SOLD listings decreased by 6% to 548 properties with a top sale of 2.8 million at 25 Old Stone Ridge Rd in Saratoga County.
- Average Sales Price increased by 12% to nearly $340,000. The combination of low inventory + buyers wanting to lock in the lowest rate possible are likely strong contributing factors driving this increase
- Average Price Per Square Foot price increased by 4%, to $185 per square foot.
- Inventory remains low, with a slight increase to a 1.16 months supply of homes for sale. 4-6 months is considered balanced, and it’s projected that the increasing interest rates will help stabilize inventory levels.
- This is likely because buyers will begin to fall out of the market, which will put downward pressure on price and potentially encourage sellers to maximize their equity.
- The average 30 year fixed mortgage rate has been increasing, reaching 5.42% according to Bankrate.com. Do not be surprised if interest rates get in the 6% range due to the actions the Fed is taking to combat inflation.
Thanks for tuning in, we’ll see you in the next Young Home Selling Team Market Update.