The summer real estate market has been bumping along with both sellers and buyers finding some level of frustration in the market.
Higher interest rates, low inventory, sellers who are feeling stuck in their homes and trapped by their very low current mortgage rates, and buyers who are straddling high home prices and high interest rates all add up to a market that seems to be moving in fits and starts.
Some homes continue to garner multiple offers as buyers compete for what they see as the best deal of the weekend while other attractive homes are sitting and waiting for a while for the right buyer to come along.
At the same time, some buyers feel a sense of frustration as their choices are limited while others seem to breeze in, find a great place, and negotiate a good deal for themselves.
These dynamics are creating a sense of balance in the market as neither sellers nor buyers seem to have the clear upper hand.
So what do the numbers show us? And what is a consumer to take from this?
As of now, the market is still off the highs of last year by about 5-10%, depending on what area and type of home you are considering. As we see and hear from our clients, buyer sentiment and interest in the housing market is still there, but with interest rates now hovering around 7%, many are having a hard time stomaching the higher monthly payments.
In the beginning of this year, interest rates fell and plenty of buyers hopped back in the market. We saw home prices climb as buyer demand surged. As we now enter mid-summer and with interest rates close to 7%, it feels as if momentum has slowed some. It may be that if interest rates persist around or above the 7% mark, we could see downward pressure on home prices.
If you check out the chart below, you can see median sold price is down year over-year in Boulder County. Louisville's numbers look particularly daunting, however keep in mind that those numbers are skewed as we are looking back at data from last year right after the Marshall fire in which Louisville and Superior numbers went off the charts with regard to appreciation and inventory for sale.
Median Closed Price- Boulder County