Housing Industry urges Fed Chair Powell to stop raising interest rates or risk an economic hard landing. Lead by the National Association of Home Builders, Mortgage Bankers Association and the National Association of Realtors- profound concern continues to linger in the housing industry.
Mortgage demand shrinks as interest rates hit the highest levels in 23 years! The housing market is really at a standstill and will remain at that standstill until we see a drop in interest rates.
July 2023: Median New Hampshire $480,000.
Home sales volume down 15% from 2022.
Median NH Sales Price $495,000 (up 7.6% from June 2022).
Closed Home Sales June 2023: 1,379 (down 15.5% from June 2022).
Sales of previously owned homes were essentially flat in May compared with April, according to the National Association of Realtors. Though sale prices have continued to rise, sales were still 20.4% lower than the previous year.
The slow spring sales pace is a combination of still high prices, elevated mortgage rates and a critical shortage of homes for sale. The pull between strong demand and tight supply is keeping the market competitive. Nearly a third of properties sold above list price. The start of the summer housing season is shaping up much like the spring, with slower sales due to lack of supply.
One of the benefits of buying versus renting a home is the ability to have fixed costs. However, homeowners still need to anticipate surprises.With many cities increasing property taxes, prospective homeowners would be wise to anticipate those costs going up. Additionally, they should anticipate paying for landscaping, furnishing and unexpected emergencies such as a pipe bursting.Make sure you have enough liquidity to handle those additional expenses as a homeowner, Elliot said.
Though home prices and interest rates are high, there are still possible ways prospective homebuyers can cut costs. Homebuyers may also want to consider buying points on their mortgage, which will let them lock in a lower interest rate.
As homebuying incentives start to come back, such as with closing costs, be sure to ask if there are opportunities to reduce the overall price of the home at this time. Prospective buyers who have lower incomes should explore their city or county websites for homeowner or down-payment assistance programs.
One of the ways to be in the best financial position to purchase a home is to save! You should attempt to save and put away extras monies each month so taking on the cost of a new home won’t surprise you. Constantly look to improve your credit score, which will place you in the best possible position to get a good mortgage rate. Watch your spending habits and review your credit report to correct in inaccuracies.
Current home sales are still down in March and compared to March of 2022. Inventory is 41% lower than pre-pandemic levels and single family housing permits are down 31% while builder's continue to remain cautious do the interest rates.
What will our spring market bring upon us?