Numbers are going up and down in our local market! Interest rates, days on the market, year over year median sale price, and months supply of inventory are all up while active listings, year over year pending and settled sales, and median sales price from May 2022 to August 2022 are all down. What does this mean for our market? Let’s start with a chart of the year over year August numbers from Real Estate Information Network (REIN, our local MLS) to visualize the data:
Judging by the chart, you would think we are in a seller’s market that is heating up but that isn’t necessarily the case. In May 2022 the median sales price was $328,795 and it went down to $315,900 in August 2022. That is a difference of about 4%. Keep in mind that most national studies over the years show that homes sell for a couple of percent more in the spring than other times, so we shouldn’t put too much stock in the change over the last couple of months.
The mortgage rates have made a major jump, almost doubling within the last year. Nine months ago, home buyers could get a 30 year loan for around 3% and now the average is around 6%, greatly reducing buying power. For example, if a buyer was financing a $250,000 home at 3% a year ago, their principle and interest payment would be about $1,050 a month. At a 6% rate, that same $250,000 loan will cost a buyer about $1,500 a month, or if the buyer wanted a payment of $1,050 they would only be able to get a loan for $175,000. The interest rates will continue to have a huge impact on buying power and exert a major influence on our local real estate market.
Last month we wrote that the months’ supply of inventory (MSI) is the best way to tell the direction of our local market. (Click HERE if you want to read what we wrote last month). That number went up to 1.39 from 1.37 in July, and last year in August 2021 it was 1.41. Remember, economics say that an average market has a MSI of between 5 and 7 months.
While we do feel like the market is slowing some, we have a long way to go to get back to an average market. Most experts think interest rates will continue to rise so, if you are thinking about selling, this fall is a good time to put your house on the market. The demand from buyers is still high and the number of homes for sale is still low. If you would like a free, no-obligation market analysis on your home, give us a call (757-726-7653 for Lee, 757-434-9084 for Harry) or reply back to this email.
Lee and Harry
|Last week Lee was the speaker for the downtown Suffolk Rotary Club meeting and gave a talk on our local real estate market. He managed to keep everyone in the room awake and would welcome the opportunity to speak to other groups! Lee can tailor the presentation to the interests of your group. If you are part of a group that would be interested, please reply back to this email or give Lee a call (757-726-7653).|
What’s Happening in Suffolk
14th Annual Mutt Strut Festival
The 14th Annual Mutt Strut Festival will be held at Bennett’s Creek Park on Sunday, September 24, 2022, from 2-8pm, and will showcase exciting new pet-related activities and fun for the entire family, including dog agility courses, a frosty paws eating contest, children’s activities, a lure course, and a performance by fan favorite, Soul Intent.
Kick back at the Holland Ball Field and watch the 1992 classic movie, Ladybugs! Concessions will be available and the movie will begin promptly at 8:15pm. This event is free and open to the public, just be sure to bring a chair or a blanket to sit on.
A Tribute to Peace Exhibit
n challenging times, honoring peace, and tranquility through art is the focus of this exhibit. Artists’ works will feature two-and three-dimensional pieces that project their visions of peacefulness, whether it be a bright and cheerful landscape, a colorful floral, or a portrait of someone in a tranquil pose.
The Suffolk Art Gallery invites you to the Fall Exhibit, “I Have to Go: Landscapes and Dreamscapes” by Jenny Bonner and Katey Morrill. Through acrylic paint, mixed media, and photography, both artists describe space as a moment of place and a record of time.