DB Digest: Weekly Housing Market Report | June 5th-11th, 2023

Welcome to the DB Digest weekly housing market report! My report offers the latest information for you to stay informed on real-time market activity.

Whether you're looking to buy or sell a home, are interested in current market trends, or simply enjoy staying informed, this report has something for you!

June 5th-June 11th, 2023 Housing Market Report???

• New contracts rebound, still below past.?New contracts rebounded from their post-Memorial holiday drop, up +23% week-over-week. Contract activity has stayed below pre-pandemic levels and last year’s (-19.2%) when interest rates hadn’t risen past 6%. If there’s a drop in interest rates later this year, it could persuade buyers on the sidelines to jump back into the buyer market.
• Interest in homeownership steady.?Consumers are continuing to tour homes. Showing activity has continued to track near 2019 levels despite the lack of inventory on the market. Buyers are motivated, but they need homes to purchase. Yet it looks like sellers, who are sitting on low mortgage rates, are not rushing to list their homes, keeping supply tight and competition high.
• Price alleviation not likely??For the week ending June 11, the median price of new listings is +5.9% higher than the same week last year. The median list price has generally hovered just above the 2022 line since the end of January. While sellers today must price to the current market, due to limited inventory, prices remain high.

TLDR:?Showings Up in Short Term, New Contract Volume Up Week-Over-Week, Inventory Still Tight, Home Prices Still Up From Last Year

Client Activity This Week

?? RENTED ??

• Fairmount Neighborhood
• 2 Bed/2.5 Bath
• 1250+ SF
• 9' Ceilings
• Fenced Backyard

Lesson of the Week ??

While interest rates are not the only factor in a buyer's monthly payment, they play a major role!

Today's rate has been hovering around 6.5%, which is down from the peak above 7% earlier this year, but still up considerably from the past few years.

Below is an example of the impact of interest rates on a buyer's monthly P&I (Principle & Interest) Payments.

*Assume a $400,000 Purchase Price*

5% Down | Monthly P&I @ 6.5% = $2,400 | Monthly P&I @ 5% = $2,039

10% Down | Monthly P&I @ 6.5% = $2,275 | Monthly P&I @ 5% = $1,932

20% Down | Monthly P&I @ 6.5% = $2,022 | Monthly P&I @ 5% = $1,717

Smart Buyers today are...

• Leveraging current market conditions to negotiate a lower purchase price
• Acknowledging they will refinance their loan in the near future when rates dip again (see above payments)
• Avoiding future bidding wars and higher purchase prices when rates dip and competition floods the market again

Want to chat?

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