Sold housing prices were virtually unchanged from last month coming in at an average of $374,369. This is indicating there might be a buyer/seller equilibrium in the horizon for the housing market as we head towards the holidays. The biggest change over last month is the days on market. This number is a culmination of many factors affecting real estate such as inflation, global events, job market, and of course interest rates.
As interest rates continue to rise from the historic lows earlier this year, the impact can be felt in the housing market and is evidenced by the decreasing number of mortgage application according to www.tradingeconomics.com. Continuing the downward trend, last week there were 14.2% less applications and 3.7% less then the week preceding that. As there are less buyers willing to enter the market, there are also less buyer viewing homes. Bright MLS, our local and 2nd largest multiple listing service in the country, indicated that there were 26.2% less showings this year when compared to this time last year. As a result, the upward trend of DOM, or days on market, has again increased this month, reaching an average of 76 days.
One last thing to consider is the amount of home price reductions. The good news is in August over 50% of the homes that sold had a price reduction whereas for September only 46% of homes needed a price reduction to sell. Further good news for home sellers is prices for those under contract modestly increased as did the average listing price for homes active on the market in Locust Grove.
