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Telling it like it is. That’s what we’ve always done, especially these days. It’s crucial to know the current ebbs and flows of the U.S. real estate market. From shifts in mortgage rates to fluctuations in sales volume, the changes have a nationwide impact. at WLH, we are finding GOOD opportunities for our clients due to the changing market. This blog post aims to summarize some of the latest news affecting it.
Mortgage Rates: A Surge In 2023
Here’s the situation with mortgage rates, which is vital to buyers and sellers.
- Rates have surpassed 7%
- Lenders urge caution when locking in rates
- Economists warn of potential 8% rates
- Link to past financial crises
- Awaiting commentary from the Fed
In this turbulent financial climate, mortgage rates have become a central concern. This rise has a ripple effect on various aspects of real estate, from affordability to sales volume.
Housing Affordability
Let’s talk about the affordability of homes.
- Median payment increased by $240 in the last 12 months
- Tight inventory remains a challenge
- Builders offer better rates in the new home market
- Sluggish relief in affordability deterioration
Housing affordability had been easing somewhat, but the rising rates have offset any gains. This, coupled with low inventory, creates a rather gloomy picture for those looking to buy or sell. But it’s not all doom and gloom; for instance, new construction markets offer glimmers of hope.
Also Read: Home Prices No Longer Homebuyers’ Top Affordability Concern
Median Housing Payments Increased $240 In One Year
The Low Point?
What’s the scenario on sales volume?
- Hit ‘rock bottom,’ according to experts
- Not just a Phoenix issue, but nationwide
- Millennials await market correction
Sales volume hitting a low might seem like bad news, but remember, the only way to go from rock bottom is up. Low sales volume reflects a hesitant market, one waiting for the other shoe to drop or rise, as the case may be.
Home Prices: A Closer Look
We also need to consider home prices.
- Prices rose in early 2023
- Affordability crisis worsens
- Low demand adds to price volatility
While demand is currently not our strong suit, but the low inventory and subsequent demand could increase prices. This is a complicated market where various factors intersect, making keeping your finger on the pulse more crucial than ever.
Thank You For Reading
As we stated in the beginning, we aim to tell it like it is. While the market conditions may appear challenging, remember that opportunities exist in every market scenario. If you’d like to know how we’re utilizing this market intelligence to assist our clients, don’t hesitate to get in touch with us at Williams Luxury Homes. At WLH we create ‘A Luxury Experience For Everyone.’ Stay tuned to the LUXE BLOG for more updates.
Also Read: 10-Year AZ Housing Trends Released – Stats You Need To Know