Home News 5 markets where home sales are cooling fastest

5 markets where home sales are cooling fastest

by admin
0 comment

Stockton, California

DenisTangneyJr | iStock | Getty Images

After the frenzy of the bidding war U.S. housing market is starting to coolAs mortgage rates rise, especially along the west coast. As a result, some sellers have been forced to make adjustments.

“Sellers must be more realistic,” said Birkovalchuk, a real estate broker at Coldwell Banker Warburg.

Some western markets are chilling most rapidly, with San Jose, California at the top of the list. New Redfin analysis Based on median selling prices, inventory changes, and other housing data from February to May.

More from personal finance:
What you need to know about canceling a home purchase under a contract
Parliamentarians urge Yellen, Treasury to get rid of “bureaucratic formalism” in Series I bonds
Inflation has risen 9.1%, the highest since 1981. How are your personal interest rates compared?

Daryl Fairweather, Chief Economist at Redfin, explained that recent low mortgage rates have stimulated demand in many markets and overheated some.

“Now that mortgage rates are high, these markets are returning to Earth more quickly,” she said.

At the end of December, 30-year fixed-rate mortgage rates were around 3%, but the Federal Reserve has boosted these rates to nearly 6%. Raise the benchmark rate To fight Rising inflation..

5 The U.S. housing market is the fastest cold

According to Redfin, these are the fastest-chilling US markets in the past year, based on factors such as median selling prices, inventory changes, and price cuts.

  1. San Jose, California
  2. Sacramento, California
  3. Oakland, California
  4. Seattle, Washington
  5. Stockton, California

5 US housing market is the slowest cooling

Based on the same factors, according to Redfin, these US markets have been the slowest to cool in the past year.

  1. Albany, NY
  2. El Paso, Texas
  3. Bridgeport, Connecticut
  4. Lake County, Illinois
  5. Rochester, NY

“Especially at the high end, we all see the same slowdowns and retreats,” says Kowalczuk.

In fact, according to Redfin’s analysis, high-value homes in regions such as Northern California have been hit harder as 30-year mortgage rates approach 6%.

At a 6% interest rate, a $ 1 million home with a 20% down payment could be about $ 1,400 a month higher than a 3% interest rate, according to the report.

“It’s enough to let someone decide to rent or move to a completely different location,” Fairweather said.

Advice to sellers: Be strategic when pricing your home

As the market cools, sellers shouldn’t expect an open house to raise multiple competing offers and bid wars by 20% to 30% above the asking price, Kowarchuk said. “That day is gone.”

When preparing to list a home, he said, hire an experienced realtor or broker who knows your neighborhood or area to help you understand the correct asking price. If your pricing is too aggressive, “it will be a kiss of death.”

Buyers who later come across a listing may find something wrong with the property if the initial highs keep buyers away and housing slumps in the market, Kowarchuk said.

You may also like