Real Estate News July 2022
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Rising Mortgage Rates May Affect Asking Prices
When the Federal Reserve first lowered national interest rates at the start of the COVID-19 pandemic, buyers essentially flooded the market. Now that interest rates are increasing, some sellers are lowering their asking prices to make sure that buyer interest doesn’t begin to wane. If you’re searching for your dream home, you may be able to find it at a reasonable price.
In May 2021, 6.2% of homes reduced their listing prices. During May 2022, this number increased to 10.5% of homes. It may seem like a small adjustment, but it’s not the only indicator.
The number of newly listed homes has increased by 6% over last year, which is another sign of possible price drops to come. The national median home price is still up compared to 2021 and 2020, but if more and more sellers start to reduce their asking prices, this points towards the real estate market shifting back to buyers. When market conditions are favorable to buyers, the negotiating power doesn’t remain solely with the seller. Even if a seller hasn’t dropped their asking price, they may be open to doing so during negotiations.
Even though interest rates are increasing, now is a great time to buy if you have good financials and access to enough funds for the down payment. Even a small decrease in asking prices and buyer competition should give you a better opportunity to buy a home at the right price. Let’s connect and discuss yoru options!
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July 4, 2022
Real Estate Newsletter July 2022
by Debbie Marett