This should not come as a surprise to anyone that interest rates have risen again. They have been on a steady climb since the 3rd week in August. However, they have sharply increased over the past few weeks. Conforming rates are up ¾ of a percentage point and Jumbo is up ½ percentage point. This is a big hit to Buyers’ purchasing power.
Remarkably, Buyer activity has been pretty decent with 80 homes going under contract in the past two weeks. In that same timeframe we’ve had 133 new listings come on the market. As you can see, the trend continues with new listings outpacing Buyer demand. It will be interesting to see the activity for this upcoming week and whether the jump in interest rates will have an impact on the number of homes going under contract.
Another trend we are seeing is that the number of homes selling below their asking price is increasing. Starting in early July, more homes were selling below their asking price than above. However, that said, the majority of homes were selling at or above their list price. In July roughly 69% of homes sold at or above, August was 65% and so far, September is 55%. However, what has been pretty consistent over the past three months is that of the homes that sell below their list price, they sell for an average of 95%. Meaning they sold for about 5% under their price.
Just for fun I wanted to compare our current market to the last time we were in a balanced market, which was 2019. Looking at sold stats for September 2019 the numbers are pretty similar to today’s market. 53% of homes sold at or above their asking price. The homes that sold below, sold at 94.6%. Homes were on the market longer in 2019 than today, 50 days on market versus about 30 currently. Interest rates were considerably more stable in 2019 than today and we had less overall hesitation in the market. I bring up 2019 just to let you all know, we’ve been here before.
We’ll be closely watching interest rates and the market impact over the coming weeks and we will be sure to keep you informed.
-Steve & Sandra
𝐴𝑛𝑑 𝑎𝑠 𝑎𝑙𝑤𝑎𝑦𝑠, 𝑖𝑓 𝑦𝑜𝑢 ℎ𝑎𝑣𝑒 𝑎𝑛𝑦 𝑎𝑑𝑑𝑖𝑡𝑖𝑜𝑛𝑎𝑙 𝑟𝑒𝑎𝑙 𝑒𝑠𝑡𝑎𝑡𝑒 𝑞𝑢𝑒𝑠𝑡𝑖𝑜𝑛𝑠, 𝑓𝑒𝑒𝑙 𝑓𝑟𝑒𝑒 𝑡𝑜 𝑐𝑎𝑙𝑙/𝑡𝑒𝑥𝑡 𝑢𝑠 𝑎𝑛𝑦 𝑡𝑖𝑚𝑒! 𝑊𝑒’𝑟𝑒 𝑎𝑙𝑤𝑎𝑦𝑠 ℎ𝑒𝑟𝑒 𝑡𝑜 ℎ𝑒𝑙𝑝!
Steve 📲 (c) 206-769-9577 📧stevehill@windermere.com
Sandra 📲 (c) 206-271-7100 📧sbrenner@windermere.com
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Windermere Real Estate /FN
