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October 31, 2023
Fall Update
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End of October
Here we are well into autumn and interest rates for conforming mortgage loans are averaging 8% with a ½ point in upfront fees. This represents a significant increase in the cost of borrowed money for real estate buyers. The combination of high interest rates, high home prices and low inventory has resulted in a thinning of the buyer pool across the nation, about 35% according to real estate data company CoreLogic.
On the CT Coastline new listings have declined and low inventory persists. Listings are down 26% in CT compared to the first half of 2022 and home price levels remain resilient.
Nationally new inventory remains slow coming to market as both housing permits and housing starts are off 7% in comparison to the same time last year. Builder sentiment has declined recently and is currently at its lowest level since January as lower foot traffic in new developments takes hold. Locally, this is apparent as several approved building projects have yet to be jump started by developers.
Offsetting higher interest rates are favorable economic numbers and financial markets combined with an estimated $30 trillion to be passed down from Boomers to Millennials which helps to keep demand stable.
So some sage advice for those of you currently in the market to purchase a new home, be patient and remember the following:
The number one rule of real estate buying remains: the better located homes sell without delay if priced appropriately.
In low supply markets increase your geographic area.
Be financially prepared and know your costs.
Taper your expectations.
Consider your long-term needs.
Have a home inspection.
Work with a realtor committed to forming a strong relationship.
Also remember, don’t stop looking for the home that meets your needs, it may come up at any point.
As we move closer to the holiday season please know if you or anyone you know is thinking of a move whether now or in the spring, I am happy to be of service and would look forward to helping you or any of your friends or relatives with any real estate needs.. and as always, I am grateful for any potential client referrals.
Cheers,
Jane
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86 Halls Road, PO Box 509, Old Lyme, CT 06371
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©2023 Coldwell Banker. All Rights Reserved. Coldwell Banker and the Coldwell Banker logos are trademarks of Coldwell Banker Real Estate LLC. The Coldwell Banker® System is comprised of company owned offices which are owned by a subsidiary of Anywhere Advisors LLC and franchised offices which are independently owned and operated. The Coldwell Banker System fully supports the principles of the Fair Housing Act and the Equal Opportunity Act. Pub 11/23 |
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