Where’s the precipitation?! We went from the best snowfall ever in December to one of the driest Januarys on record. We’re back to praying for snow and making the most out of the base we have so far. See our weekly email for snow activities that are still going strong!
As 2021 finished up it looked like the real estate market might have been moderating a bit; demand was backing off and inventory was building slightly. That definitely didn’t last! As soon as the holidays passed it was back to game on! Active listings hit a new all-time low in early January at 293,000 active single family homes available. For comparison, at this time in 2016 there were over a million active single family homes listed! Inventory is a major predictor of the market and with more and more investors buying up properties for rental income the curve isn’t likely to move
much in the coming months.
Mortgage rates jumped up to 3.5% this month. What does that mean for the real estate market? Well, we are still low as the 10 year average is 3.9%. The question is, at what point do buyers hold off due to a rise in mortgage rates? Typically this happens when the rates rise above the long term average but buyers may be more sensitive to the rising rates because of the significant increase in average selling prices. The combination of the inventory curve along with mortgage rates in the coming months will be our gauge for predicting the market this coming year. As of now we are still riding the wave of the incredible sellers market! I just sent out my in-depth market update to everyone on my mailing list so you should be receiving it any day now. If you would like to be included in my quarterly updates please reply with your current address and I’ll add you to my mailing list.
If you have anything you want to share with our community please let us know so that it can be included in our weekly email newsletters. We at the Zager Group are honored to continue to serve our community and are available if you have any questions or if we can provide you with any services, please feel free to reach out anytime. Thank you for the opportunity to serve you and for your continued trust and support!
