Spring is just around the corner, and I think that both buyers and sellers are ready to see some drops in interest rates.  While we wait for the Federal Reserve to make their decisions, let’s take a look at what last month’s housing market was like for homes in Locust Grove.  

Homes in Locust Grove on the market

In February, there were thirty five homes on the market listed for sale.  This is a slight decrease from January’s forty one.  The average number of days on the market for homes in February was one hundred and forty days.  This is a significant increase over January’s one hundred seventeen.  The average price for homes in Locust Grove increased from $513,000 in January to $532,000.  For this increase, it is important to note that there is a farm for sale for 1.75 million and a million dollar waterfront home in Lake of the Woods on the market.  These homes drove the average up.

Why are the days on the market increasing?

I think that there are several factors that are contributing to this increase.  The first is the time of year.  Winter months in Locust Grove are traditionally ones with less action on the market.  Secondly, the federal reserve did not lower the interest rate as hoped for, but they did hint at the possibility of doing so later in the spring.  The metrics the federal reserve is using to determine when to lower the rate is not quite where the federal reserve believes it needs to be in order to continue to combat inflation.  They analyze the newest data before each meeting to determine when to cut rates.  In the meantime, this may have caused both buyers and sellers to put a pause in their plans.  However, I always like to remind my clients that these are averages, not end points.  Sometimes a home, like one that I recently listed in Lignum, can sell faster than the average.  Sometimes, it takes closer to the average days to close on a home.  In either case, knowing the average days on the market helps sellers have reasonable expectations for their home selling process.  

Homes in Locust Grove under contract

In February, there were forty homes in Locust Grove under contract.  This was an increase from January’s thirty homes that were under contract.  The average days on the market for these homes was thirty three days which was a slight increase from twenty seven days in January.  The average price for homes in Locust Grove under contract was $441,000.

Homes in Locust Grove that sold in February

Twenty four homes sold in February.  The average days on the market for these homes was forty days.  This is a decrease from January’s fifty days.  The average days on the market was $422,000.

From all these numbers, we can tell that while the market is not moving quickly in terms of days on the market, homes are still selling and at higher prices.  As a seller, having your home in a move-in ready condition will help to make it appealing to buyers.  As prices rise, it is important to buyers that the home they purchase is in good condition and does not need major renovations.  

For buyers, it is important to be ready to make an offer on a home that meets all of your needs when it comes on the market.  Since there is lower inventory, when a new home comes onto the market, you won’t be the only one interested.  Buyers need to have a pre-qualification letter from a lender, so when they find a home their REALTOR® can immediately write an offer.