MARKET UPDATE: Bumpy, But With A Chance Of Rising Tides
Updated: Dec 13, 2022
What’s going on with the real estate market this week? It’s bumpy with a chance of rising tides! What does that mean?
Well, we have a steady supply of inventory and a steady supply of buyers; however, homes are not flying off the shelves in 3 to 5 days like they were a couple of months ago. Now, it may take closer to 8 to 12 days, which in the bigger picture of things is NOT a big red flag, just an adjustment from the craziness from earlier this year.
Here's a look at the current inventory in our local cities:
Concord — 79 detached homes for sale with 12+ of those homes listed at $1M+.
Pleasant Hill — 23 detached homes for sale with 17 of those at $1M+.
Walnut Creek — 51 detached homes for sale and 49 of those are listed at $1M+ (no brainer).
Clayton — 14 homes for sale and 11 of those are price at $1M+.
In March, many homebuyers were enjoying mortgage interest rates of 3.25% to 3.5% for a conventional 30-year mortgage (good credit and at least 10% down). This week, I’ve been seeing mortgage rates at 5% and up to 6.12% fixed for 30 years.
So, rising tides could mean more homes on the market as homeowners are finishing up the pack/purge/prepare cycle, and rising rates, meaning that the cost of borrowing money is increasing quickly (almost weekly).
We still have a steady stream of supply and demand, but homebuyers' purchasing power has been decreasing as rates increase.
With the financial markets experiencing some pain and value adjustments (stock market dips and drops), it may be a bumpy ride for the next couple of weeks as the economy sorts itself out a bit.
Is it a good time to sell? Is it a good time to buy? It depends — and lets talk about that a bit more next week.
Have a great weekend everyone!