Bring Home Buyers Back to Real Estate Market : Current Market Updates
Mortgage rates are continuing their downward trend, which is adding fuel to the fire of the current market trend of increasing sales. Those who are interested in buying a home this year should give careful consideration to the implications of this piece of news. Although interest rates are relatively high compared to other times in history, they are currently at a lower level than in the past. They could serve as a useful negotiating chip in discussion with a seller.
Keeping this in mind, let's take a look at the numbers for the week that ended on January 22 and compare them to those from the same week a year ago as well as those from the same week the previous month to get a sense of the current trajectory of the WA real estate market.
Running Seven-Day Average
As its name suggests, the seven-day moving average illustrates the market's movement over the previous seven days. It provides information on recent events, is a fantastic indicator of short-term trends, and recognizes environmental shifts before annual reports do. The weekly average as of January 22 is displayed below.
New Listing — 719
Listing Sold — 466
Listing Pending — 1135
Back on The Market — 107
List Price Reduced — 397
Listing Expired — 71
List price Increased — 51
Contingent — 24
Listing Cancelled — 108
As you can see from the table above, there were 719 new home listings, 1135 pending listings, and 466 sold listings. If you're wondering why this is important, let us tell you. Those of you who are worried about a declining market should pay close attention to this.
Even though we aren't crushing it, we're also not floundering in this booming market. More and more buyers are coming into the market as mortgage rates return to pre-COVID norms.
Compared To The Previous Month
The following is a brief comparison of the numbers from the previous week to those from the previous month:
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The average number of homes for sale is down by 14.7%.
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There are 33.9% more new listings.
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33% fewer listings are being sold.
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There were 22.4% more homes under contract.
Compared to the numbers from the previous month, the overall picture could use some improvement; however, given that it has only been a week, this is to be expected.
Compared To January 2022
It's time to compare the real estate data from this week to the same period from the previous year, and the results look promising for this year!
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The median number of houses on the market has increased by 180.4 percent.
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New listings are down by 9.4%.
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The number of listings sold is down by 38.5%.
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There are 3.5% more homes under contract.
Anyone on the fence about doing anything should pull the trigger and get it over with because now is the perfect time to buy or sell a luxury real estate property in the WA region.
Compared to Last Year
When we compared the numbers for January 2023 to those for January 2022, we discovered the following:
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The median number of houses on the market has increased by 180.4 percent.
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New listings are down by 9.4%.
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The number of listings sold is down by 38.5%.
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There are 3.5% more homes under contract.
As the month progresses, these totals will shift.
When Mortgage Rates Decrease, Buyer Activity Jumps. Why Is This?
Homeowners gain confidence whenever interest rates go down, leading them to spend more money on improving their homes. This confidence continues to grow as the rate continues to fall, which may eventually lead to an increase in the number of people purchasing homes.
Additionally, when interest rates on mortgages are low, it is much simpler for individuals to have their loan applications accepted. This is because there is less competition among lenders during this time. When trying to bring in new customers, some lenders will lower their interest rates to attract those new customers.
Wrapping Up
In the end, mortgage interest rates continue to fall as the market shows signs of becoming more stable. There has been an uptick in sales, which might indicate an increase in the number of people purchasing homes. Even though market conditions are far from stable, recent trends suggest some calm may be on the horizon. The level of competition will only get higher as time goes on, so any buyer interested in making some investment should do so as soon as possible.