New information released this week shows that area home sales are down over 10% from this time last year. Interesting note about this time last year, we were down from the year before. Why you ask? There seem to be several reasons behind this trend.
The first is the rise in local home prices. Prices are up significantly this year while income levels are up on average just over 2%. This makes homes more expensive to buy.
Inventory continues to shrink as well. If you are looking for a lower priced home in good condition, you might want to go look for hen's teeth instead or play the lottery. Your odds will be better.
And finally, average mortgage rates are up around 4.875, about 1 point higher than last year. For buyers right on the financial line, the rates can push potential buyers out of the market. For local higher priced homes, Days on Market has increased.
Take all these factors into mind and you get slower home sales. How do you navigate these turbulent waters? Call your favorite Real Estate Pro. I am sure they can help shed light on your current market.