"How's the Market?"

I've been personally asked more times than I count in the last month "Josh, how's the market? Are the interest rates affecting home sales? How long are houses sitting on the market? We need these rates to drop soon don't we?" I figured I'd briefly answer those questions this month due to the up's and down's we keep seeing.

1. How's the market?

Volatile - while I can make educated guesses, it's hard to say what will happen next. We thought after the spike of interest rates this year, we'd start seeing relief by now. Unfortunately, that hasn't happened and they've actually ticked up a bit more. Experts are saying that relief should still come, but it is taking longer than expected.

2. Are Interest Rates Affecting Home Sales?

Collectively...NO. Overall, there are fewer home seekers and even fewer home sellers as opposed to just a few years ago. However, due to the lack of inventory (homes currently for sale), the demand for homes is still high despite the fewer buyers in the market, which is continuing the drive home prices upward.?

3. How Long are Houses Sitting on the Market?

There are extremes here, but the median number for the GBR area is roughly 2 weeks. I've had homes getting multiple offers on day 1 (still!), and we're seeing some houses sit on the market for a few months (for a variety of reasons).?

4. We Need These Interest Rates to Drop Soon Don't We?

I'd love to see that BUT, be careful what you wish for. My personal opinion after analyzing all of the market data and factors is that once the interest rates drop below 6% and continue to head south, we'll begin seeing most homes scooped up very quickly with lots of competition (remember 2021 and 2022?). It might make some people wish they bought now and refinanced later, as houses will be hard to get with very few to choose from and stiff competition. And let's not forget, this will also drive up prices again!