Why the decrease in home sales?
Affordability decreased because real estate values did not decrease sufficiently to match the increase in mortgage rates. Mortgage rates increased at the highest rate in history over the last six months and now mortgage rates are at their highest levels since 2007.
Why did the interest rate increase?
The Federal Reserve (the Fed) wants to reduce inflation and unemployment. The result? Increased mortgage rates, decreased stock market values, and reduced purchasing power for real estate. The Fed is the most powerful economic institution in the United States, perhaps the world. The Fed is not a part of the federal government. Wall Street's mantra is "Don't Fight the Fed." Fear the Fed.
What is the affect on the real estate market?
Believe it or not, the sky is not falling. People buy, sell, and lease homes because it is a form of shelter, regardless if the market is high or low. People are transacting all around and the market is now more focused on quality because as affordability decreases, buyers become pickier. The most important features buyers demand are location, condition, and lot. Buyers are thinking big picture and long-term. Turnkey properties are far and few between and buyers value their time and lifestyle, so sellers receive a premium for completing work.
Are you interested in buying or selling?
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Our team specializes in home improvement ideas and renovations to sell for top dollar. We also provide our sellers with reputable vendors to complete the work. Even better? We source the materials & create the design so you don't have to lift a finger.