November 14th: Real Estate Update

Last Thursday, the real estate industry took a sigh of relief, as we saw the average 30 year rate plunge 60 basis points from 7.22% to 6.62%. How does this effect our real estate market locally?

For starters, it brings positive news into buyer's minds. The real estate market has been in a negative news onslaught for the past 4 months or so. This is the best argument we have to date that the worst times are behind us. I still believe rates will go up from here, but I don't foresee the wild increases like we've seen thus far.

The rate decreases help with buyer's affordability. At the local median price of $385,000, the total monthly payment including taxes and insurance at 7.22% would be around $2,885. At 6.62%, that payment is $2,735. That saving of $150/month translates into around $15,000 of buying power to potential home shoppers.

For sellers and owners, this news helps reassure us that we won't see our property values tank. As an owner myself, I can feel more confident about my home value as the interest rate news begins to shift to a more positive outlook.

In Mesa County

• There are currently 585 active homes on the market in Mesa County. This is a 3% decrease compared to last week

• The average sold price YTD $426,882 and the median sold price YTD is $385,00.

• There have been 82 price reductions in the last 7 days.

• The average DOM for the active homes is 64

Last Weeks New Listings

Last Weeks Sold Listings

NATIONAL MARKET UPDATE

The National Association of Realtors reports home price growth hit single digits in most markets, falling from 14% in Q2 to below 9% in Q3. The median existing single-family home price was up just 8.6% from the year before.

The Mortgage Bankers Association weekly survey showed demand for purchase mortgages rose a tick, the first gain for purchase applications in seven weeks, though they’re still down from a year ago.

The NAHB says Q3 saw a spike in active homebuyers, as 59% of prospective buyers went from the planning stages of homebuying and became “fully engaged in the buying process,” up from 46% in Q1.

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