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.