What Impact Did 8% Interest Rates Have on the Market?
❓ What impact did 8% interest rates have on the market?
📌 In the 4 markets that we cover (St. Louis County, St. Louis City, St. Charles County, and Jefferson County), sales were down year-over-year comparing October 2023 to October 2022. Sales were down 28% to 40%, depending on the market, when comparing October 2023 sales to October 2020 sales 📉
👉 Nationwide, 7.5 million homes were sold across the US in 2021. By contrast, we're projecting less than 4.5 million sales nationwide this year.
❓ What is the impact of less sales? How are less sales affecting inventory levels?
- ⬆️ Increasing inventory levels in St. Louis County
- ⬆️ Increasing inventory in St. Louis City
- ⬆️ Increasing inventory in St. Charles County
- ⬇️ Decreasing active inventory in Jefferson County because sellers are taking their homes off the market.
❓What else are we seeing?
- 🏠 There are great homes that are sitting on the market.
- 💲 Motivated buyers are starting to offer prices below the list price.
- 📝 Buyers can now write with contingencies, which they couldn't do 6 months ago.
📆 St. Charles County and Jefferson County both have more than 2 months of inventory.
- 📌 We are still well away from a balanced market of 6 months of inventory, but inventory is rising. 📊
💲 Prices have increased from October 2020 to October 2023, but we're not seeing big price jumps like we were seeing earlier this year in June.
4️⃣ Looking ahead: Sellers are going to start taking their homes off the market in the 4th quarter.
- 👉 However, we recommend keeping your home on the market or, if you're considering selling, go ahead and get your home on the market. There is no reason to wait until spring.
❗ We know what is happening in today's market. We don't know what spring of 2024 will look like.
👉 If you're a buyer, don't be afraid to write an offer, even if it's well below what you think they're going to accept. Some sellers are very motivated.
😀 If you have questions about buying, selling, or investing, don't hesitate to reach out.