How interest rates have changed the market in favor of first-time buyers.

Today I am excited to share another important market update with you all! Can you believe it is already December? As most of you know, I love to share the market data so you can see for yourselves what’s going on in the MLS. That way you can make an informed decision on what’s best for you and your family. 

Let’s start with the average sales price. It is currently $395,625, which is 9.2% higher than it was last year. Property values have risen, which is great news for homeowners. As prices fluctuate, it is important to look into how much sellers are compromising with their buyers, as this greatly affects the state of the market.

“Sellers are working with buyers much more in the lower price range that is typically for first-time buyers.”

To figure this out, I made a table comparing the adjusted sold prices in three different price ranges. The ranges are zero to $350,000, $351,000 to $650,000, and $651,000 and up. You can look at which price range you fall in to know the specific information that pertains to you. To figure out the adjusted sold price percentages, I compared the original list price to the sold price and accounted for concessions. 

In the first price range, the adjusted sold price percentage is 95%, with 18 days on market. In the second price range, it’s 99%, with 21 days on market. The third price range is 100.4%, with 25 days on market. Overall, the important thing I take from this data is that sellers are working with buyers much more in the lower price range that is typically for first-time buyers. 

I believe the reason for this is that interest rates are so high. Sellers are contributing more to buyers to help them lower their rates so they can start with a more manageable mortgage payment. This is great news for first-time homebuyers. 

If you have any questions, don’t hesitate to reach out. Also, I would love to help you do a comparative market analysis for your specific area to find out the value of your home. Call or email me anytime, and I would love to hear from you!