Real Estate: A Breakdown Of The Local Housing MarketOct 19, 2022 01:05PM ● By Rose Terami
Q: In a few words, what is the state of the local housing market in October 2022? What does that mean for buyers, and what does that mean for sellers?
A: We are seeing the market adjust. Some homes are staying on the market longer than in recent months, with price reductions occurring more often. Buyers are feeling the strain of higher interest rates and inventory challenges. Sellers are wise to price according to the current market.
Q: How has the market shifted since the summer?
A: We are seeing the days on the market for homes increase in the central areas of the Upper Valley. In addition, price reductions are more common as we enter the fall market.
Q: What factors have contributed to home prices increasing so much over the past couple of years? How does this affect the market?
A: Several factors have affected home prices. Due to the pandemic, we had an increase in buyers from out of the area coupled with a reduction in inventory. This surge in demand, in part, caused the prices of homes to increase.
Q: What are interest rates like now, and how have they shifted recently? What effect does this have on the market?
A: According to the National Association of Realtors (NAR), mortgage rates are at an average of 6.7 percent. As the interest rates increase, this decreases buyers' current buying power and affects affordability.
Q: Is the local housing market currently overvalued?
A: The market is always shifting. At the moment, with interest rates increasing and days on market going up, we are seeing prices adjust accordingly.
Q: Are home prices affecting housing affordability in the area? If so, how?
A: Yes, increased home prices are affecting affordability along with the interest rates hovering near 7 percent. Many home buyers cannot afford as much as they could in an earlier market with lower interest rates.
Q: How has COVID-19 impacted the local housing market?
A: According to NAR economists, many people have been looking for more affordable homes in less dense areas since the pandemic. Nationally, within the last 12 months, active listings have increased 35 percent on average in the suburbs compared to 27 percent in urban centers. We saw an influx of buyers from out of the area moving to the Upper Valley during the pandemic.
Q: What advice do you have for people currently trying to buy or sell or who are thinking about it?
A: If you are a buyer, it is important to gather your team of professionals. Working closely with your Realtor and lender is important—they will assist you with the challenges of the always-changing market. Great homes are out there, and your team will help you find them.
If you are a seller, it is important to keep in mind that the market is always shifting. As we move into the fall market, you will want to talk with your Realtor, who will advise you on current pricing and help you prepare your home for the market to bring as many buyers as possible.