And as with all real estate, location matters. Demand and, with it, the speed of sales is especially high in the western and southwestern states that have been experiencing the highest rates of population growth. After the frenzy of bidding wars, the U.S. UU.
The housing market is starting to cool down, particularly on the West Coast, as mortgage interest rates rise. That's forcing some sellers to adapt. Several Western markets are cooling faster, and San Jose, California, tops the list, according to a new Redfin analysis based on median sales price, inventory changes and other housing data from February to May. Low mortgage rates in recent years had boosted demand in many markets, causing some to overheat, said Redfin chief economist Daryl Fairweather.
While 30-year fixed-rate mortgage interest rates were hovering around 3% at the end of December, those rates have risen to nearly 6% as the Federal Reserve raises its benchmark rate to combat rising inflation. Markets that have cooled the fastest over the past year, according to Redfin, based on average sales price, changes in inventory, price drops and other factors. Markets have cooled more slowly over the past year, according to Redfin, based on the same factors. In fact, high-dollar homes in areas such as Northern California have been hardest hit, as 30-year mortgage rates approach 6%, according to Redfin analysis.
As the market cools down, sellers should no longer expect an open day to attract multiple competing offers or bidding wars between 20% and 30% above the selling price, Kowalczuk said. Those days are over. As you prepare to list a home for sale, hire an experienced real estate agent or broker who knows your neighborhood or region to help you determine the right selling price, he said. If your price is too aggressive, it will be the kiss of death.
If a high initial price drives buyers away and the home languishes in the market, buyers who find the listing later may sense that something is wrong with the property, Kowalczuk said. Although the current market offers less leverage for sellers, you may still get a higher price than before the pandemic, Kowalczuk said. Do you have a confidential information tip? We want to hear from you. Get this in your inbox and learn more about our products and services.
Housing inventory is tight in Provo and elsewhere in Utah, where quality of life and job opportunities attract buyers. The housing market may finally be starting to cool down, but homes are still selling faster than they were at this time last year. “I think a lot of people were afraid of missing out on last year's sales season and just decided to postpone home sales,” Hale says. One factor that keeps inventory low is that today's homebuyers can't afford to buy larger properties in such a dynamic seller's market.
That has boosted demand for housing in cities like Worcester, which offers more space and is less than an hour's drive away. A significant portion of the demand for housing in the Stockton area comes from Californians looking to escape the expensive Bay Area. Of course, housing markets vary greatly from city to city when it comes to demand, prices, demographics, and more. Seattle has retained high-paying jobs and its industries have withstood the blows of the pandemic, producing high-income buyers that boost the housing market.
Many homeowners, especially older people, have been reluctant to put their homes on the market during a global health crisis. Homebuyers Moving to Salt Lake City Cite Affordable Housing Prices, Job Opportunities, Low Unemployment, and Outdoor Activities. Listed homes are moving so fast in Richmond that a local real estate agent quoted in the media compared the market to a grocery delivery truck that sells food in the parking lot and doesn't even carry its products to store shelves. To determine the locations where homes sell the fastest, researchers calculated the median number of days on the market, with lower values ranked higher.
Historically, the Indianapolis area has offered affordable housing prices and a lower cost of living than the national average. Such a vigorous seller's market has put home prices out of reach for many prospective buyers. . .