Current Real Estate Market Update!
- As a result of our team earning “The Best of Zillow” achievement, we are privileged to receive first hand information from Zillow’s Econ team regarding observations and insights about the current real estate market conditions. With that being said, we would like to extend this information to our clients to ensure ya’ll always have the most accurate up-to-date information. Here are six things you should know about the current real estate market.
1. Increased Listings Price Cuts: The share of listings with a price cut reached 9.2% in mid-September, the highest since last November. This could indicate that buyers may have withdrawn or that sellers initially listed their homes at high prices.
2. New Listings Increase: In contrast to the trend since July 2022, this August saw an unusual month-on-month increase in new listings, reducing the year-over-year deficit in half compared to July. This could change the supply-and-demand dynamics in the market.
3. Inventory Rebounding: The total count of available inventory continued to rise thanks to stronger new listings last month and weaker purchasing flows, indicating a slow recovery from the inventory drought we experienced earlier.
4. Mortgage Interest Rates Impact: It's likely that higher mortgage rates, which crossed 7%, have deterred homebuyers. Increased mortgage rates and stretched budgets have led to a 122% increase in the monthly principal and interest over the past three years for a typical home, possibly causing some buyer reluctance.
5. Sellers' Motivation: Some homeowners may have decided to sell after seeing strong sales posted earlier this summer. For others, life changes may have pushed them to sell, leading to an uptick in the new listings.
6. Less Competition Among Buyers: With more listings and motivated sellers, it seems this fall might be an advantageous time for buyers with adequate budget room to absorb the recent jump in mortgage rates.