Average sales price is up, days on market are low & negotiation space is slim, despite interest rates being in the 7% range - but why?
One word, seasonality.
Seasonality in real estate refers to the natural fluctuations in the real estate market; the easiest way to think of it is that as the seasons change, so does the real estate market. For us, there’s generally more buyer demand in the spring and summer, and sales generally tend to slow down during the fall and winter.
Negotiation space is hanging on for dear life right about now - across the board we’re seeing less than 1% of wiggle room & we’ve seen more and more properties sell for above asking price. Market conditions are very price point dependent right now; homes in the $500-599k price range are the most likely to sell above asking price whereas homes in the $1M+ range are the least likely.
Interest rates remained mostly unchanged over the last week or so since fed chair Jerome Powell announced that they would be leaving rates unchanged at their last meeting. The 7.25% average is based on a 30-yr fixed rate mortgage from https://www.mortgagenewsdaily.com/mortgage-rates
Whether you’re planning on buying or selling, you want to have the most realistic expectations possible and the way to achieve that is by understanding what’s going on in your price range.