7% Mortgage Rates?🏦

For the last two years, we've seen a steady demand for housing while supply of homes is still out of balance. Housing trends seem to change by the week, leaving many of us wondering where the real estate market will head. While it's impossible to know for sure, keeping up with the latest activity can provide some perspective. Let's see how Sacramento County did in Q3:

• Available homes for sale were up in June, July, and August compared to the same months last year (more options for buyers)
• Less homes sold in the last few months of this year versus the same time last year (activity is slowing down)
• Pending homes increased in August versus the previous two months (possibly in anticipation of rising rates)

• Average days on market has been on an upward trend since June (homes are taking longer to sell)
• It is taking around 28-30 days for a property to remain on the market before it sells
• Sellers are agreeing to come down from their original list price (lower ratio = more of a buyer's market exists)

Last week, the Fed raised rates again, for the fourth time this year. Although the Fed does not control mortgage rates directly, I wouldn't count on them dropping any time soon as it seems the Fed is on an aggressive path to fight inflation and slow the economy.

If you are thinking of buying, don't wait for interest rates to "go back down," they are holding steady. If you're a buyer, you could be taking advantage of sellers covering closing costs, and doing home inspection repairs again. If you are thinking of selling, your home is still worth more than it was last year. Be prepared for a longer time on the market.

The housing market will do what it does: adjust and adapt as needed. One thing to remember is that the real estate market is relative. You are either going to buy with lower prices at higher interest rates, or buy at higher prices when rates are lower. 

If you are curious about what's happening in a specific neighborhood or have any questions about the market, I'm here for you.