Following real estate news developments nationally can be a disconcerting experience for many right now.
Just this week, we've seen mortgage rates break the 6% barrier for a 30-year home loan, and continuing to rise from there! Home buyers are also having to cope with price inflation and, very likely, a further rise in general interest rates for other borrowing too.
It would be absolutely wrong to try and pretend that this is not going to have implications for our homes market here in Iron County, and in some respects it already has.
However, if we look at the above stats for May, it's undeniable that our market is still outperforming the same period last year, when mortgage rates were about half of what they currently are...
So what's going on here?
Buyers are still arriving in our area from other states in high numbers, many using their equity gained in even more lucrative markets and not needing a mortgage.
But it's probably also fair to say that we are still seeing this positive effect most clearly in the mainstream market for homes here. Higher value properties are not selling so easily and that's partially reflected in the graph below:
Inventory of available homes for sale in May was 65% higher than the same month in 2021. But we are still talking about just over two months of supply in the market, which is arguably still not adequate to accommodate current buyer demand.
The key takeaway right now is that things are very, very likely to worsen before they improve. By listing in these peak summer months, you'll be giving yourself the best opportunity to sell and for the highest possible return.
The great news is that, here in Iron County, we have to some extent been sheltered from the worst of the current real estate negatives. But these influences are likely to have a growing impact here and it would be a huge mistake to think otherwise.
As ever, please don't hesitate to contact us to discuss the current market in the context of your own situation on 435-327-2090.
