Active inventory decreased by eight after an exceptionally strong week last week. This is because new listings also decreased off of a high last week and more homes got into contract (47). Mortgage rates had another significant 31 basis point hike this week, and surpassed 7% for the first time in the weekly data since October of last year. As for the 30 days numbers, the Median and Average prices stayed fairly flat. Meanwhile, Days on Market increased for the first time in 6 weeks. % over asking price decreased slightly compared to last week’s 30-day numbers and Price/Sqft increased by just $3.
Interestingly, the mortgage rates hiked this week despite a recent debt ceiling agreement. When the dust settles (and it passes Congress), one would think that that would have a positive impact on mortgage rates. TBD. We may have found a new, temporary, plateau in pricing in the $1.3M range. The average price is very strong. This is an indication that the high-priced market is still churning. What has become obvious is that cash buyers have a HUGE advantage in the buyer market. For buyers looking for primary homes or second homes, cash buyers aren’t as affected by mortgage rate fluctuations. For investors, cash allows you to cash flow and hold for appreciation while borrowing investors struggle to find deals that pencil.
