Watch the original video: Market Rollercoaster: Will the Ups and Downs Keep Coming?
Advantages for Buyers in the Current Market
As the housing market begins to show signs of recovery and rates begin to lower, many buyers are hesitant to enter the market even though they have the advantage. Watch my video to learn more. 👆🏼
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📉 Mortgage Rates & Inflation
The Fed raised rates by 25 basis points on February 1st. Inflation numbers have improved slightly, however it is still far from target and the Fed will continue to combat this. Keep in mind mortgage rates are coming down, and are not directly tied to the Fed rate. As inflation continues to decrease, we will also see mortgage rates improve.
🏠 Nationwide Housing Shortage
In January inventory nationwide hit less than 1 million homes. There is such a huge demand for housing and not many sellers are willing to come to the market yet. On top of that, we are not seeing many new homes being built. As the busy spring season approaches, the question remains if the market will see an increase in supply from sellers entering the market.
❓ Where is the Market Going?
Redfin reports that the housing market is showing signs of recovery. I read an article recently that stated, pending home sales and mortgage applications were up in January. I saw this first hand, as mortgage application were up 28% since December, indicating that people are beginning to view this as a buying opportunity.
👀 Buyers Advantage
Buyers have an advantage in the current market. Sellers are offering incentives such as paying closing costs and accepting below asking price. Despite an increase in market activity, there is still low inventory, making it favorable for buyers. Although interest rates are higher than a year ago, the potential for a price cut on a home makes it an attractive time to buy.
🏘️ Local Trends
A local appraiser’s report showed that the median sales price in Shasta County dropped from $445k in November to $388k in December. However, recent activity suggests that the market is recovering, with multiple offers received on homes in desirable areas in the last two weeks.
👋🏼 Please Reach Out.
If you’d like more information on this please give me a call and I’d be happy to fill you in. There is a lot of confusion surrounding the housing market right now, if you ever have any questions or concerns please do not hesitate to reach out. I hope you have a great February, talk to you soon.