FEW HOMES ARE SELLING
Limited inventory (particularly for the types of homes that are in high demand) Constrained buyer pool due to higher interest rates, higher prices and overall buyer’s fatigue from the challenging market for buyers over the last year. Two of the reasons for the fewer sales are: 1. 2. Although November had slightly more closings than October, the overall trend is still a steady decline. The # of homes sold in November was down 39% compared to November ‘21. Sussex & Worcester counties had the steepest reductions in homes sold. 2022 is shaping up to have the fewest homes sold in the last 5 years. 9,810 homes were sold in 2018 and at the end of November, only 8,640 homes have sold this year. December sales will not close this gap.
INTEREST RATE UPDATE
Buyers are seeing a potential window of
opportunity at the end of 2022 with some relief in interest rates. After a month of peak rates (over 7% on average from Mortgage News Daily’s rate tracker), rates dropped to the mid-6’s. Another bump down occurred at the beginning of December. Of course, this begs the question of whether the decrease will continue or is this just a temporary dip? Time will tell…
Will the drop in interest rates be enough to entice buyers back into the market? How did our market finish in 2022 and what predictions can we make about 2023? Don’t miss our next issues as we explore these questions and more. In the meantime, I wish you a happy & healthy New Year!
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