Just Tell Me How The Market’s Doing

54

Judy Boyle, Realtor® Proudly serving the Borough’s and Beyond with honesty and integrity since 2005. www.judyboylecares.com JudyBoyleRealtor@gmail.com 508-561-7164
Judy Boyle, Realtor®
Proudly serving the Borough’s and Beyond with honesty and integrity since 2005
www.judyboylecares.com
[email protected]
508-561-7164

Before I start any of my real estate articles, I like to ask around to see what people want to read about. This month, the common themes were that everyone is tired of hearing about the shortage of inventory and how to spruce up a bathroom. They said they want to know what the market is doing in their specific communities and what is going to happen with mortgage rates. In one way, I get out of this month’s article pretty easy. In another way, I am at a loss for words.

When I am discussing the market, I let the data tell the story. In the chart below, Multiple Listing Service (“MLS”) statistics for eight area communities illustrate that there are considerably more pending listings than active listings*. It also shows that almost everything is selling slightly over the list price in low days on market. It’s still a seller’s market. End of story.

As for mortgage rates, as I always say, nobody has a crystal ball. All we can do is follow the Consumer Price Index (“CPI”) which is a key indicator of inflation. When the CPI rises significantly, it indicates higher inflation. To combat high inflation, central banks (like the Federal Reserve in the U.S.) may increase interest rates. Higher interest rates make borrowing more expensive, aiming to slow down economic activity and reduce inflation.

When asked recently for her predictions, Deputy Chief Economist & Vice President, NAR Research Jessica Lautz responded, “It depends on the Feds and whether inflation gets to their 2% target”. Lautz went on to say after the latest CPI report came out, “Positive: Mortgage rates eased for the second consecutive week and remain below the historical average of 7.74%. Negative: Mortgage rates are still above 7% for the fifth week in a row.” I really don’t have much more to say other than, at least the rates are heading in the right direction. Take care all…and send me suggestions for my next article!

Just Tell Me How The Market’s Doing

 

 

No posts to display