The real estate market is moving FASTER than I have ever seen in my career! Being a licensed real estate professional since 1997 and full-time since 2006, as you can imagine, I have seen a lot of changes. New home construction, the housing bubble, foreclosures, resale, the Covid crisis, the new-boom etc...
Working for the local 72SOLD affiliate Hague Partners has allowed me to help many happy Sellers, sell their homes for more money, in a shorter time, with the lease amount of convenience using the 72SOLD program especially during these changing times. One of the perks of working for the broker is we receive at least 5 hours of training to help our Sellers in this changing market and a weekly market update. The latest graphic is posted above with some annotations.
You have hard in the news about how the economy is changing. Inflation, higher gas prices, higher grocery prices, supply chain crisis etc... But what is going on in the housing market? Simply put, it is changing faster than I have ever seen in my career. Consumer sentiment is down to one of the lowest points we have seen when it comes to housing. Prices most likely peaked in February or March of this year (2022) and per the graphic above we have seen the fastest decline in the Cromford Index number since 2005! We are lower than 2005 now and keep on dropping.
Interest rates have gone from the "3" range to the "6" range in just 3 short months (see graphic below). Back in February 2022 if you purchased a $500,000 home with 5% down your interest rate was around 3% and your payment was approximately $2,483. Today with interest rates in the 6% range at 6.25% that same house payment is $3,405. That is approximately $1,000 per month more or 27% higher payment in just 3 short months! As you can imagine the number of Buyers who qualify for this new higher payment is significantly lower than earlier this year. In a recent report from one of the companies that keeps track of Buyer showings, showed a 74% decline in showing activity. That is a major decline. Because of this homes are sitting on the market longer (28 days on average) and price reductions are a common occurance.
I am not trying to "scare" anyone or use a sales tactic in order to get you to sell your home. You need to be well informed so you can make an educated decision. If you are 100% happy with your home and your payment and don't have a reason to move, then don't. Enjoy your home. But if you have a reason to move, I would not delay! There are FEWER BUYERS and MORE HOMES coming on the market each day. Luckily, I am a 72SOLD program director and know the latest techniques and methods that must be used in our changing market to get you top dollar. An independent study showed our brokerage is getting 11.2% more vs the MLS average in the first 5 months of 2022. If I can be of service and help you get your home SOLD, give me a call or text today at (602) 750-1744.