Real Estate Market Summary
The “Proceed with Caution” mentality is still prevalent although it is loosening its grip a bit due to a steady decline in interest rates over the last 6 weeks. Buyers are also realizing that they have a bit more negotiation power when compared to the last couple years. Seller concessions are a very real possibility in today’s real estate market which are allowing buyers to negotiate better terms and are finding creative ways to work around the current interest rates.
Nationally, pending sales rose 2.5% month-to-month, marking the first increase since May, while sales of existing homes fell 1.5% as of last measure, according to the National Association of Realtors® (NAR). Demand for housing persists, but higher mortgage interest rates have cut into housing affordability, with total home sales down 17.8% last year compared to 2021.
Although home prices remain high, mortgage rates declined steadily throughout January, falling to their lowest level since September, sparking a recent surge in mortgage demand. Lower rates should aid in affordability and may soon lead to an uptick in market activity ahead of the spring selling season.