Here’s what’s happening in our market as we head into spring.
Let’s talk today about the early spring market. We’re going to start with March because it’s the first complete month that we have data for.
Our state association of Realtors says that the number of closed sales fell by 50% compared to March 2021. If the market is so hot, how can we sell fewer homes? It’s just because we don’t have enough homes. It’s hard to sell properties when there are none available.
The new listings in March of this year were down 45% compared to last year. Statewide, our inventory shrank by 25% down to one month of supply. Our inventory crunch is just continuing to build.
“These rising interest rates affect both buyers and sellers.”
What does this mean for sellers and buyers? One topic we’ve covered in our office for a few weeks now is buying power. That’s a buyer’s ability to purchase a home. Obviously, this impacts buyers, but it can also affect sellers.
Right now, rates are around 5%. Two months ago, there were around 4%. If you were an entry-level buyer looking at a $450,000 home two months ago, you could only afford a $400,000 house now. That’s a big jump in the type of home you can afford.
For sellers, that means that your buyer pool has shifted. If you’re selling a $400,000 house, you’re now marketing to buyers who were looking at $450,000 properties not too long ago. That takes a different strategy. You have to understand what that means for you.
These interest rates are very fluid right now, especially since we’re entering the spring market. Even with the inventory shortage, we’re still seeing a lot of interesting offers and strategies.
If you have any questions about our local market or real estate in general, please call or email us. We would love to hear from you.