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Higher Interest Rates Have Slowed Buyer Demand

Good Monday Morning!

In the ever changing world of Real Estate, home prices both here in the Eugene and Springfield area and nationally continue their upward trend.  The lack of homes for sale is the primary cause for this continued home price escalation, but even with low home inventories, buyer demand is slowing quickly due to increased mortgage intereste rates, high home prices and an economy that is in serious decline with no sign of changing anytime soon.  As I have been predicting for months, home prices will begin to flatten and may even reverse and begin a downward trend soon.  This is evidenced in our local market by fewer buyers looking at homes, many price reductions for homes sitting on the market and not selling and the lack of multiple offers like we witnessed in the past months. If you are considering selling your home soon, you may have missed the red hot market we had for several years, but the market you have today and the value of your home today are much stronger than what lies ahead, so do not wait to put your home on the market thinking that our current downturn will pass anytime soon.  Here is an article from "Realtor.com" that talks about about current national Real Estate market.

The numbers: U.S. home prices rose again in March even as higher mortgage rates began to bite, leaving prices at all-time highs. The S&P CoreLogic Case-Shiller 20-city price index was up a record 21.2% year over year while the federal government’s price tracker climbed 19% in the same span.

The Case Shiller index rose 3.1% in March compared to the prior month. A separate report from the Federal Housing Finance Agency showed a 1.5% monthly increase.

The big picture: The record increases in home prices over the past few years is bound to slow with the Federal Reserve raising interest rates. The cost of a 30-year fixed mortgage has almost doubled to about 5.25% from 2.75% last fall.

Key details: The year-over-year increase in the 20-city Case Shiller prices index bested the previous record of 20.3% in February.

Phoenix once again recorded the highest rate of home-price rises in the in the country in March, according to the Case-Shiller report. Prices were up a whopping 32% from one year ago.

Dallas also posted a 30.7% increase in the past year.

The smallest increases were largely in older cities in the Northeast and Midwest such as Washington, Boston, New York, Minneapolis and Chicago.

Still, prices were up 12.9% in Washington, which had the smallest year-over-year gain.

Looking ahead: Demand is waning—evident in weakening purchase applications and home sales—in response to sharply higher mortgage rates, which should provide some relief on prices,” said Rubeela Farooqi, chief U.S. economist at High Frequency Economics. “Even so, for now, prices are showing little sign of abating.”

Have An Awesome Week!

Stay Healthy! Stay Safe! Remain Positive! Trust in God!

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AND HERE'S YOUR MONDAY MORNING COFFEE!!

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