The fed raised rates again this week, amidst the news of not one, but two, regional bank failures - this has created a lot of talk amongst reporters (from all sides), but what is it doing to the housing market? Well, in our local market here in Reno-Sparks, not much...
Because of the rise in interest rates, some have said we're in a shifting market - but has that shift come to pass, even despite the news? According to the data, our market is holding steady rather than shifting at this point - our average sales price and slim inventory are proof of that. Month over month, we've seen no change whatsoever in the average sales price, days on market are down showing strength in buyer demand, and new listings are up showing that there are sellers who still *need* to sell.
In December, we saw the percentage of asking price received drop down to 96.9% - the lowest it has ever been since the Sierra Nevada Realtors® has started reporting this data in 2013. But that has creeped back up over the last three months. The average seller is receiving 97.4% of their asking price - showing that we still have negotiation space, but less so than when everyone was first adjusting to rates in the 6's and 7's. The National Association of Realtors® recently reported that more buyers are finding today's rate to be the new normal, and that adjustment is leading to less negotiating.
On a day to day basis the market is in a pretty interesting spot. What I make sure to tell all of my clients is that when it comes to buying or selling, it really depends on the property itself and the price. I've seen some get multiple offers within days of being listing, while I've seen others go under contract for $20k under list price, with an added seller concession. Again, it really all depends on the property.
If you've got questions about the market and how these conditions affect you, I'm more than happy to answer them.