Market Update - November 2022
Market Action Index - November 2022
Economic forecasts as we head toward the end of 2022 vary depending on what you read and where you get your news. However, one thing that has remained constant in the last month is the ever increasing mortgage interest rates and home price reductions.
On Wednesday, November 2nd the FED announced another increase.
Market Profile - November 2022
It’s another 75 basis point increase, the 4th large increase in a row and the 6th time this year. While mortgage interest rates are NOT directly linked, it’s likely we will continue to see mortgage interest rates move upward. That being said, if you’re a buyer in the market, I would reach out to your mortgage broker to discuss locking in a rate prior to any additional increases. The FED remains determined to increase rates until inflation drops to their goal of 2%. All that being said, reach out to your mortgage broker. They can best advise you on what’s to come. If you don’t have a mortgage broker, I have a few brokers I trust and can refer to you at your convenience.
Percentage of Home List Price Decrease
Home prices have plateaued, but where we’re seeing a decrease is the median listing price. Additionally, about 40% of listings have undergone price reductions. A few things on price reductions… we’re still doing a lot education with sellers in regards to what homes should be listed at for today’s market. Today’s price is not what it was in January. If you’re a seller in this market, I wouldn’t be discouraged by the fact that you “missed the peak”. If you sold tomorrow you will absolutely benefit from all of the growth over the last 3 years. All that being said, gone are the days where we’d have 16 offers on a home within days of being on the market. The buyers that are out there right now are very meticulous and cautious. No one wants to buy a house only to watch it decrease in value over the next 12-18 months. They watch the same news we all do and they’re worried about a recession, similar to how you might feel. Homes that sell quickly right now are the ones that have been prepped for the market and priced correctly. Pricing your home correctly right now is absolutely CRITICAL. The most momentum for an offer will come in the first 2-3 weeks. If there’s no traffic, there’s no offers, then there’s ultimately no leverage. Buyers in this market will wait you out, trust me. And I’m saying that even with the threat of increasing mortgage interest rates. Overall, the longer your home is on the market the more lowball offers you’re going to get and the more frustrated you’re likely to be. If you’re interested in an evaluation of your home as it currently stands, please reach out. I’d be happy to help!
As always, hope you have a great November and a wonderful Thanksgiving!
Brendan