All the critical changes in our local housing market you need to know.
There’s a lot happening in real estate in the United States, but especially in Massachusetts and New Hampshire. If you’re thinking of selling or buying a home, you need to know the changes that happened in some of the critical market indicators.
First, let’s talk about interest rates. This week, the Fed increased interest rates again by .25%. They made this decision because a strong job report came in and they felt that the economy is still moving ahead. Plus, inflation is being managed but still on the rise.
As a result of the interest rate increase, you might be surprised to know that interest rates are coming down if you’re a consumer looking to get a mortgage. We’re now at 6.8%, down from close to 7% at the beginning of the month. They are tapering out a bit, which is good news for consumers.
Next, let’s discuss mortgages. As a result of the market that we’re in today, refinances have diminished significantly since the interest rates have been climbing, which means that all mortgage lenders are chasing your business. Many are willing to roll out innovative programs, and in some cases, they’re offering better rates or packages to help with closing costs. Therefore, this presents some opportunities because the competition in the mortgage market is stronger than it has been.
Finally, let’s consider inventory. Right now, we are in the tightest inventory market that we have ever seen. Last year was tough with inventory, but this year in our market of southern New Hampshire, Greater Lowell, Merrimack Valley, and north of Boston, we are seeing inventory down by 50% in some instances. 30% would be an average. That just means there are not a lot of sellers coming to market. As a result, there are not a lot of homes on the market, so buyers are fighting over the few listings that are available. Therefore, if you are a seller, there’s a lot of opportunity right now.
What does that mean for pricing? With inventory being as tight as it is, there are still a lot of buyers out there looking for homes. We are seeing a return of the multi-bid situations, where lots of people are bidding for one property. When that happens, prices climb. Therefore, we won’t see a pullback in pricing in the spring market because the inventory is so tight.
Even though interest rates are up, there are still a lot of people who can afford to buy homes, and they’re going to fight over fewer properties. If you have any questions about the market or are thinking about listing your property, we’re here to help you. We have lots of agents who can guide you expertly through this very interesting and challenging market. Call or email us anytime, and we hope to hear from you soon.