The Real Estate market may not be as hot of a commodity as chocolate covered strawberries and fresh cut red roses on Valentine's Day, but by no means is the market DEAD!
Towards the end of Summer/early Fall 2022, the market pretty much came to a stand still. Once we trudged passed the holiday season, and fought through ravenous interest rate hikes, we came to a happy place this New Year. A place with increased loan limits, steadying interest rates, and buyers and sellers starting to peak out of their isolation caves.
The market is NOT as hot as it was 12 or 24 months ago, but it's honestly for the best. The historically low 2% interest rates of the covid pandemic did their job, they re-energized the market, but that time is over. Home values increased at unbelievable rates to the point where people decided to cool their jets and sit out of the market. There is a certain tipping point where one just decides... I don't want to pay "THAT" for "THIS".
As we settle into our new "normal" market, buyers and sellers are both cautiously approaching the scene. Homes are taking longer to sell, but they ARE selling. Days on market in Stanislaus County this month are about 10 days longer than last month; which is double compared to last year's February at 25 days on the market. The good news is that homes ARE selling! Already this year, 178 homes sold in ST county in January. We are only halfway through February and we are already at 95 sales WITH 376 PENDING sales in escrow.
Previous forecasts had warned that interest rates COULD top 8% by the end of 2022! Thankfully we barely scraped over 7% and this year we have settled back into the 6% range (for 30 year fixed with good credit). But who wants a 6.5% interest rate when we were all getting 2.5% a few years ago, right? Well, I am sorry to say but those days are gone and I am not sure they are EVER coming back. Those were unprecedented rates during unprecedented times while millions were dying of covid and the entire economy was shut down. It's probably for the best if we don't ever have THAT happen again. BUT there are creative financing options to help people obtain lower mortgage payments despite the current market rates.
I'd love to chat with you more about your home value as well as creative financing options for YOUR next purchase. Click the "HIRE ME" tab and schedule a complimentary consultation!
I look forward to chatting with you soon.
Jessica Nickell
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