Market Updates April 4, 2023

When are Prices and Interest Rates Coming Down?

The question I hear the most from friends and people I meet is “When are prices and interest rates coming down?”  I wish I could tell you when interest rates are coming down, but nobody can say for sure.  Many economists are predicting lower mortgage rates later this year and I’m hoping that’s going to happen.

Prices are still high due mostly to lack of inventory.  Right now there are only 12 homes for sale in Easton, compared with pre-pandemic figures of 69 in March 2020 and 77 in March 2019. Fairfield has 70 homes for sale at the time of this writing, compared to 518 in March 2020, and 439 in March 2019.  So why isn’t there inventory?  Many homeowners refinanced their homes in the last three years with interest rates in the 3-4% range and aren’t motivated to purchase again for a rate between 6 and 7%, and a much higher monthly payment. Because many are waiting on the market to change, homes aren’t turning over and inventory has stalled. Lack of inventory combined with a high demand for housing results in escalating prices.  We don’t see this changing anytime soon – economic change takes time – but that doesn’t mean you should give up on finding the home you’ve been dreaming of.  Stay in the game and let me know how I can help.  Our team has strategies for buyers!

If you’re a seller thinking of listing your house, the time is now!  Inventory is still low, so this is a great time to list your home, as we have an abundance of motivated buyers and not much competition from other sellers.  If homes are priced correctly, they often receive multiple offers over asking.  I would love to give you an opinion on your home, so please contact me if you are considering selling.