|Interest Rate Change and How it Affects Your Local Market 📊|
|Did you hear how interest rates took a hit today?|
Remember, the stability and strength 💪 of any real estate market is based on what’s happening in its locality so please don’t 🙅 read and listen to just any news and accept that as an update for our specific area! Not to say they are wrong of course, it’s just a very diverse conversation depending on where you own real estate.
With that said, the GOOD news is that the overall pulse of OUR local real estate market is still very strong.
As an article written by Movement Mortgage says a lot about the economy and how it’s actively parallel with the real estate market. We will keep it brief unless you’d like to read all about it here.
Freddie Mac economists said in their release, “After the substantial slowdown in growth last fall, home prices stabilized during the winter and began to modestly rise over the last few months. This indicates that while affordability remains a hurdle, homebuyers are getting used to current rates and continue to pursue homeownership.”
Demand is still very present and strong in our local market yet not in the focus it was when the mortgage rates were historically low. According to The National Association of Realtors‘ monthly home sales report, home sales are down 3.4% in April from March. The good news is it also reflected an increase in inventory of 1%.
Look at these numbers from last quarter compared to the previous year.
(January through March 2023 median sold prices compared to January through March 2022)
🏠 Fredericksburg & Spotsylvania, Virginia showed up to 7.2% increase.
🏠 Stafford, Virginia 6.2% increase
🏠 King George, Virginia 12.7% increase
🏠 Caroline, Virginia 12.3% increase
🏠 Orange, Virginia 6.7% increase
I think it’s safe to say prices are increasing. Remember this happened while interest rates were rebounding back from the historic low rates. Here is another detail to show stability in our local market.
Multiple offer situations are now present in this Spring season. If the homes are priced right and under $400,000 while appearing to be taken care of – there is almost a guarantee there will be more than one offer. This typically happens when inventory is low and buyer demand is high.
+ High buyer demand
All those buyers out there, even with the new interest rate announced at 6.39%, because folks are realizing that prices will continue to rise.
If you have any questions how to navigate all this in reality – text or email us!