Sales remain strong, but soaring interest rates, a shaky stock market, rising inflation and economic certainty have put a damper on demand.SEATTLE – Luxury U.S. home sales fell 17.8% year-over
COMPETITION DECLINES FOR FORTH STRAIGHT MONTH
Dated: May 23 2022
Homebuyer competition saw its fourth straight month of declines in April as rising mortgage rates take their toll on the housing market, according to the data from the Emerald Coast Association of Realtors MLS.
The dip in competition can be attributed to the increase in mortgage rates, which reached 5.3% in May after starting in March at just 3.76%, bringing the typical monthly mortgage payment for homebuyers up a record 44 percent year-over-year.
Higher rates are limiting not only competition, but also the amount homebuyers willing to pay, which could bring about a slowdown in price growth, according to the National Association of Realtors economists.
“The rise in mortgage rates is prompting more house hunters to back out of the market, causing competition to cool,”. “Higher rates are also limiting homebuyers’ ability to significantly bid up home prices, meaning some homes aren’t selling for as much over the asking price as they would have a year ago. This could help set off a slowdown in home price growth in the coming months.”
“Homes that would have received eight or nine offers several months ago are now getting one or two. That’s because the jump in mortgage rates has forced a huge pool of lower to mid-market buyers to drop out,” “The buyers who are still in the market are those who are less sensitive to mortgage rates because they have large cash reserves.”
The Silver Lining – Florida is one of those fortunate states that buyers are moving to and buyer demand may not fall off as much as those states they are coming from. For the last 2 years our Great Northwest Florida has experienced a healthy surge of relocations to our area. What I have personally heard our new neighbors comment is that compared to the home prices in the areas they are coming from that our prices and property taxes are very reasonable.
The data provided in this article comes from the Emerald Coast Association of Realtors MLS, it is believed to be accurate but is not to be relied upon. This data is for homes, townhomes & condos located in the Destin, Miramar Beach Santa Rosa Beach including 30A, Inlet Beach and Point Washington Florida.
I have been a Florida Licensed Realtor for over 27 years, have SOLD more than $850,000,000 worth of every kind of real estate from Destin to 30A and West Panama City Beach. With over 26 years of real ....
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