Welcome to the March 2017 edition of your market update! Lots of big things have been happening in our market lately.
The biggest news that you might’ve heard about was the Fed raising rates. When the Fed raises rates, a lot of people and the media sometimes lead you to believe that they’re raising mortgage rates when in reality they’re raising the federal funds rate. Mortgage rates and the federal funds rate are two different things. When the federal funds rate goes up, there are times when mortgage rates go up and times when they go down.
This time when the federal funds rate went up, mortgage rates actually went down. This is great news for you whether you’re a buyer or a seller. If you’re a buyer, your rate just got a little bit lower. If you’re a seller, there are a lot more buyers that might be able to afford your home at this lower rate.
The number of new homes coming onto the market is down 18.6% from the same time a year ago. On the other side of the coin, the number of homes going off the market or into escrow is up 1%. Whenever you have fewer homes coming onto the market and more homes going off the market, you’ll naturally have a decrease in the supply of homes for sale. Sure enough, our supply of homes for sale is down over 31% from a year ago.
If you’re thinking about selling, now is an amazing opportunity because there is a lot less competition and you have a little bit more control of the market. If you’re thinking about buying, you need to have an agent on your side who knows how to make your offer stand out from the crowd. At Whissel Realty, we have a lot of fun things and innovative strategies we use that can make that happen for you.
If you have any questions about the state of our current market or are thinking about buying or selling a home, don’t hesitate to give us a call or shoot us an email. We’d be happy to help you get started.