How’s the market?
We are often asked how the real estate market is doing. Here is quick snapshot of the current market.
Demand is high, supply is low
Homes are selling at a strong pace and buyers complain there aren’t enough homes to look at.
Average Days on Market = 61
Average Price = $321,069
(this is up 3.6% from 2016)
Average Sales Price to Original List Price = 95.1%
Locally, inventory has averaged 4 months of supply since the start of 2017.
When inventory levels are between 6-8 months of supply, it is a balanced market favoring neither buyers nor sellers.
Currently, the market is favoring SELLERS in our area with about a 4 month supply of homes since the start of 2017.
However, buyers are careful not to jump on any properties that are priced too high. Homes sell quickly when the buyer sees value, and the list price is in line with the condition AND the market.
Interest Rates Are Rising
Interest rates for a 30-year mortgage at currently at 4.25%. This is up from 3.75% just 6 months ago. The consensus among economists in the housing and mortgage industries is that rates will increase in the 2nd half of 2017 with rates of 5.0% likely.
What If Mortgage Rates Rise?
For a $250,000 home with 20% down, the mortgage amount equals $200,000:
4% Principal & Interest = $955
5% Principal & Interest = $1,074
6% Principal & Interest = $1,199
At 6% versus 4%, a buyer pays $250 more per month in interest OR loses $40,000 worth of purchasing power.
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The Scott Loper Team
Scott & Lisa Loper