There are really 3 things to focus on in today’s market. Those three things are Interest Rates, Inventory and Home Prices. Everything else rises and falls on those three metrics in most markets and in this market there is an argument to be made that everything rises and falls on one thing…. Interest Rates.

We can go ahead and start there. Interest rates have gone from 8% down to 7.35% over the last 30 days. This has been largely due to a lower than expected (added) Jobs Report and a lower than expected Inflation number (both month over month and year over year). This happened at the same time last year and started a trend that led to much lower rates, if that happens this year, expect demand to pick up just like it did last year after the first of the year if this trend holds. Interest rates have been the driver of the real estate market and just this small drop in a seasonally slow time of year has led to an increase (albeit a very small one) in buyer activity.

Inventory remains at historically low levels, but due to an increase both locally here in Central Ohio as well as nationally, we are seeing overall inventory levels coming in above last year, despite the overall environment being very similar. This could be a signal that we have finally seen the end of the low inventory environment that has plagued the real estate market and led to crazy high prices along with the bidding wars, etc. That being said, this is the very beginning and not the guarantee of anything!

Pricing is the thing that so many have been predicting will fall and it continues to be stubbornly high despite the interest rates, which has led to very low affordability. That being said, the average sales price in October was more than 5% more than last October and the same trend is in place so far in November this year.

Thank you for continuing to support Marsh Home Group, we appreciate all of you for your continued support and remain grateful for all that you have done to contribute to our success over the years. We look forward to what is to come over the upcoming years!

Happy Thanksgiving!

Troy

Leave a comment