The housing market in Locust Grove continues to see changes as buyers and sellers react to the sways in market conditions.  While we saw some upswing in activity, the pause on reducing interest rates has buyers holding out or being more particular in what they purchase.  Let’s see what has happened for the homes in Locust Grove this month.

Homes in Locust Grove for Sale

In May, there were fifty two homes in Locust Grove for sale.  This is comparable to April’s fifty six homes on the market.  The days on the market saw an uptick to one hundred and one days which was an increase from the previous month’s ninety four day average.  This increase could be attributed in part to the small increases in interest rates that happened in late April and early May.  For buyers looking to purchase, even small increases can impact their budgets.  The average list price for homes in Locust Grove in May was $489,000.

Homes in Locust Grove Under Contract

In May there were sixty three homes that went under contract; this is an increase from the April’s average of fifty.  The days on the market for homes under contract was forty days.  The average list price for homes in Locust Grove under contract rose to $531,000.  This drastic increase from April’s average of $471,000 could be due to two million dollar homes that went under contract.

Homes in Locust Grove that Sold

There were thirty homes that sold in May.  In April there were twenty three homes that sold.  I would expect to see the number of homes decrease next month because of the increased average number of days on the market for the currently listed homes.  The average days on the market for the homes that sold was nineteen and the average list price was $457,000.  With two larger value homes currently under contact, I would expect that the average list price will be a little higher next month.  One third of all sellers that sold their home in Locust Grove during May provided closing cost concessions to the buyers.

What does all of this mean?

Buyers and sellers are continuing to react to higher interest rates (or at this point I will dare to say the new normal) in different ways. For some buyers, holding off on purchasing a new home until they find specifically what they want makes sense when you are making such a big investment. For other buyers, waiting until interest rates fall gives them more purchasing power. Sellers are offering incentives to buyers (like closing costs or price reductions) in order to get their homes under contract. However, most sellers are also benefiting from the equity in their homes since home prices have increased.

This push and pull creates fluctuations in the market like a decrease in average days on the market followed by an increase the following month. While the current market can feel stressful for everyone-buyers, sellers, and REALTORS®, being familiar with your local housing market and being open to compromise are two key factors in buying or selling a home at this time.

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