Home Prices Went Down in August!
Here’s what’s been happening in our market over the last month.
Home prices decreased in August! If you’re considering buying, you’re likely excited. If you’re thinking about selling, you’re probably wondering how this affects you. Either way, August was an interesting month in our real estate market.
In July, the average price was $405,000, and it has now dropped to… $404,000. So technically, prices dropped, which hasn’t happened in a while, but they haven’t dropped much. Supply has stayed at 1.2 months of inventory for single-family homes month over month but declined 50% year over year. In July, our list-to-sales price was 103% compared to what it is now at 101.1%. Pending sales climbed 14.8% year over year.
We’re still seeing a bit of buyer fatigue happening. Also, the Federal Reserve is talking about increasing mortgage rates sooner than they said before, which caused people to get a bit nervous and want to buy sooner. With inflation escalating, hedge funds and institutional investors are buying homes now because they want to put their cash into vehicles such as real estate and stocks.
Technically prices dropped, which hasn’t happened in a while, but they haven’t dropped much.
If you’re a buyer, interest rates are likely to tick up soon, which is a larger factor than price because it will affect you for 30 years. If you’re interested, Google “amortization tables” and see how much interest you’ll pay over 30 years. Even a quarter or half a point in the interest rate makes a huge difference. If you’re a seller, the good news is that we’re still in a strong seller’s market. If you're buying, you need to consider that with buyer fatigue happening, this is your window to move to your next home while other buyers are taking a break.
Things are currently stable, and it’s an excellent time to get the home of your dreams before prices and interest rates spike. Reach out to us via phone, text, or email if you need to both buy and sell because we have a list-first strategy that can help you right now. Also, contact us if you need to just buy or sell because we have strategies to help everyone. We’d love to help with whatever real estate needs you have.