September 2022 Market Recap

September 2020 Market Recap

 

Mortgage becomes homesearchers’ first and only choice in financing their first home because shelling out a massive amount seems to be impractical. Some get overwhelmed with mortgage rates and interests that seem to skyrocket perpetually but data shows otherwise. Recent years show that mortgage rates are relevantly low these days.

Mortgage rate graphic with June 2, 2022 rates: 5.09% for 30-year fixed, 4.32% for 15-year fixed, and 4.04% for 5/1-year ARM.

 

Despite this, more people become interested in visiting showing and openhouses to scout for properties. This implies that a a competitive buyer population is present and is projected to still increase in the future.

Bar chart showing monthly home showings rising above pre-pandemic demand, peaking at 285 in March 2022.

 

In relation to this, properties across the US spends fewer days in the market, on average, a  home lasts 17 days before a deal is approved by the seller.

U.S. map of April 2022 average days on market, with a national average of 17 days.

This data is supported by how competitive offers are. A typical home in the market receives an average of 5.5 offers. This implies how buyers in the market are in demand. These offers compete as sellers weigh in which among the sent offers is the most advantageous on both sides.

U.S. map showing average offers received on sold homes by state in April 2022; national average is 5.5.

WHAT’S AHEAD OF US?

Mike Fratantoni of MBA expects mortgage rates to plateau and homebuyers to re-enter the market after the rate spike.

Market quote says housing shortages and millennials reaching homebuying age are likely to keep home prices high.

 

Shivani Peterson recommends buying despite higher interest rates, saying rising home values benefit homeowners.

 

As the demand for the best homes continues to rise and is projected to rise, we can expect that prices will increase as periods pass by. The good news is, since homes never depreciates, the value of your purchased home maintains and even augments as years go by. 

 

 

 

 

SOURCE: Keeping Current Matters June 2022 

 

 

 

 

 

 

 

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