What a roller coaster ride we’ve been on the past few years! Inflation, rate moves, and other economic changes have all contributed to the unique housing market that we currently find ourselves experiencing. While we can’t control the numbers, I am a big believer in the power of information. Understanding what is happening in a local market can help buyers and sellers make decisions based on the current environment and not on what may or may not happen in a month. In April and the early part of May an uptick in interest rates has the housing market responding.  How?  Let’s take a look!

Active Homes in Locust Grove on the Market in April

There were fifty six homes on the market in April.  This is a very similar number to March where fifty five homes were listed for sale in Locust Grove.  In April, the average days on the market was ninety four days; this is an increase of six days from March’s eighty eight day average.  The average price for homes in Locust Grove remains similar to the previous month at $473,723.

The increase of the average days on the market may be contributed to the increase in interest rates.  As rates rise, buyers have less spending power and are not as active on the market.

Homes in Locust Grove Under Contract

In April we saw an increase in the number of homes that went under contract from March’s forty one homes to April’s fifty homes.  The average days on the market for homes under contract decreased from forty to twenty seven.  There was a slight drop in the average listing price from March’s $481,000 to April’s $471,232.

These numbers show us that there was a little flutter of activity in our local housing market from March to April.  The decreased average list price could be a response from sellers ready to get their homes under contract and incentivizing buyers by lowering their list price.

Homes in Locust Grove that Sold

In April, twenty three homes sold in Locust Grove and they spent an average of thirty eight days on the market.  The average price of the homes sold in April was $457,077.  In just over half of these homes (thirteen), sellers gave closing cost concessions to buyers.  

New construction homes in Locust Grove

Wilderness Shores is a growing community in Locust Grove. With townhomes being built by Ryan Homes and a new section of single family homes being introduced by D.R. Horton and Richmond American Homes, this area is bringing new to be built homes to the market.  Since builders will often create a listing for the different models of homes that will be available before they are built, this can increase the average days on the market for all homes in the area.

For example, there are twenty nine new construction homes in Locust Grove on the market with the average days on the market for these homes being one hundred thirty one days.  In contrast, there are twenty seven pre-existing homes on the market in Locust Grove.  Their average days on the market is fifty four.

What does the summer hold?

I think that all eyes will be on the Federal Reserve and the next meeting they hold in June. While there is still discussion of cutting rates, it seems that the Federal Reserve isn’t willing to do so until the inflation rate reaches two percent. Whenever the cuts do occur, I think they will be small and gradual.

For the housing market, this might mean that sellers can continue to have an expectation that selling their home can happen, but it might take a little longer than they would prefer. Meanwhile, buyers may be eager to purchase a home when interest rates fall enough to expand their buying power.