The local numbers from the Real Estate Information Network (REIN, our local MLS) last month show a market that was aiming for Santa’s naughty list but, as you can see by this chart, it wasn’t so bad that it got coal for Christmas.
Last month (click HERE to read the entire update), we wrote: It is our educated guess that when November numbers come in they will feel even worse, but because the number of homes listed is still so low we don’t see the housing market crashing. Based on the numbers I would say our educated guess was pretty good.
The local housing market is slowing down and, according to a Fannie Mae study done this fall, homebuyer sentiment is at an all time low. That being said, our months’ supply of inventory is still close to historical lows at 1.42 months.
An average months’ supply is five to seven months and real estate, just like any other market, is all about supply and demand. Until the supply (number of homes listed for sale) increases we don’t expect to see a large drop in home prices.
Additionally, the interest rates for mortgages reversed the upward trend over the last few months. This chart shows the average for the 30 year mortgage rate throughout 2022:
As you can see, the rate was hitting 7% at the same time Fannie Mae was doing their homebuyer sentiment poll. The rates have decreased a bit. We predict that as buyers get used to the higher rates and tax return money starts rolling in, homebuyer sentiment will improve.
As 2022 comes to a close, we are thankful for your support over the last year and look forward to the future. In 2023 we will celebrate Cross Realty being in business for 70 years. If we can be of service, please give us a call (757-726-7653 for Lee, 757-434-9084 for Harry) or reply back to this email.
Happy New Year,
Lee & Harry
What’s Happening in Suffolk
Welcome in the holidays with the 3rd Annual Suffolk Festival of Lights at Sleepy Hole Park! This FREE drive-through holiday light display runs for 1.2 miles and has over 35,000 bulbs-sure to put you in the festive spirit! The display is available November 25 through December 30, nightly, from 5:30 to 9:30pm.
Winter Exhibit: “The Magic Brush”
Join us at the Suffolk Art Gallery for our Winter Exhibit, “The Magic Brush,” from the Blue Heron Chapter of the Sumi-e Society of America, a non-profit educational organization founded in 1988. The group is comprised of brushed ink and watercolor painters that seek to foster an appreciation of East Asian brush painting and Sumi-e techniques through workshops, lectures, and exhibitions.
Noon Year’s Eve at Morgan Memorial Library
Celebrate the New Year a little early with a countdown, balloon drop, crafts, snacks, dancing, and more! The party will start at 11am and we will ring in the New Year at noon! For more information, contact the Suffolk Public Library at 757-514-7323 or visit SuffolkPublicLibrary.com