Have Interest Rates Finally Halted the Real Estate Market?

❓​ Have interest rates finally halted this real estate market? 

• 👉​ Rates are right below 8%, but many believe they'll go into double digits. 

📌​ This year, the nation is on pace to sell 4.6 million homes. By comparison, 6.5 million homes were sold in 2020 and 6.7 million in 2021. 

• 📉​ This is the lowest amount of sales per year in the last decade. 

Market Data Year-Over-Year 

📌​ St. Louis County

• Active inventory is up 7% 
• New listings are up 8.5%
• Unit sales are down 13% 
• Prices are up 4%

📌​ St. Charles County 

• Active inventory is up 12% 
• Months of inventory is up 50%
• Unit sales are down over 26% 
• Median sales price is up 6%

📌​ Jefferson County

• Active listings are down 11%
• Unit sales are down 18.5%
• But again, the prices are up 4%
• No change in new listings 

📌​ St. Louis City

• Active inventory up 5%
• Months of inventory up 40%
• Unit sales down 25% 
• Median sales price is up 14%

❓​ So what does all this mean? 

• 🏠​ Although prices continue to go up, unit sales are going down. This equates to an increase in active inventory. 
• Great homes, priced right for this market have been selling with multiple offers and over-asking price. 💲
• 📉 However, buyers are slowing down a little bit and some homes that would have sold 2 months ago are still sitting on the market. 

👉​ Traditionally in the 4th quarter, most agents recommend sellers to take their homes off the market. 

• ❌​ That has never been a Gellman Team recommendation. 
• ❗​ We have always kept our homes on the market. 
• 👉​ Less competition and there are still serious buyers that are ready to go.

📌​ If you're a seller, you have to be patient.

📌​ If you're a buyer, you have to evaluate what financing options there are today. You're going to have to get creative.