Hope you had a great weekend. As we wrap up the first half of 2021 I wanted to get you a quick update on the market.
I know a lot of buyers and sellers decided to take a break from there home search because of the price increases, multiple offers, and the thought of over paying for a home was a real fear and a disappointing experience.
I am hoping to sprinkle a little good news.
Home inventory has increased in the past few weeks, we now have about 80 more properties available for sale than we did a month ago, we have broke 400. Typically this time of year we have roughly 900 homes on the market. Although, the supply is still 50% less than normal, we are seeing an increase in home inventory.
In addition, Open Houses are coming back. Yep, you will start seeing those come to your neighborhood too, if you have not already.
Another statistic is that in the past week we have seen 50+ homes drop in price and more homes hit the market than that have sold.
Lastly, there is some mixed conversations about mortgage rates. With inflation expectations announced from the federal reserve last week at an increase of 3.4% and a bond sell off, mortgage rates could increase. We are still early on that one.
However, if rates increase .5% this would affect buying power. Here is how..
Lets say you qualify for a conventional loan with buying power of $300,000 at a 3% interest rate. With a 5% down payment, the monthly mortgage payment would be roughly $1750.
If that interest rate were to increase to 3.5% for 3%, your buying power would decrease about $15,000 to $285,000.
As many buyers wait for prices to drop, interest rates could increase. If you are Payment cautious, which you should be, keep an eye on rates.
If you have any questions, PLEASE feel free to connect with me anytime.