What’s Up with Real Estate?
National news and local views for the week ending Friday, September 29, 2023
National Real Estate News
Nat'l prices hit a new record
See that little blue bar in the chart above? That's the Case-Shiller national home price index relative to its mid-2022 peak. It's now a positive number, which means that the modest decline in prices that we experienced in 2H 2022 has already been eliminated. 10 of the 20 big city indexes are also at record levels, with Chicago and Cleveland already 4% above their mid-2022 peaks.
But so did mortgage rates
'Higher for longer' commentary from US and other global central bankers, plus fast-rising oil prices, have the market concerned about inflation and the path of future Fed rate hikes/cuts again. The average 30-yr mortgage rate jumped to 7.65% this week, levels not seen since 2000! With demand dampened by higher rates, new home and pending sales both plunged in August.
Acting vs. waiting
The Case-Shiller index rose nearly 6% in 2022. And it's on pace for another 5% gain in 2023. At current home prices and mortgage rates, the cost of acting can feel very high indeed. But with home prices rising steadily, the cost of waiting (lost equity upside and a more expensive home to buy later) can be even higher! If you're waiting (and hoping) for lower rates/prices, let's have a chat!
Local Market Trends
As of Friday, September 29, 2023
| Area | Median Price | Active Listings | New Listings - 5 days | Median Days on Market |
|---|---|---|---|---|
| 78108 | $370,000 | 355 | 10 | 57 |
| 78247 | $335,000 | 136 | 17 | 35 |
| 78232 | $432,500 | 56 | 5 | 36 |
| 78258 | $526,000 | 135 | 7 | 63 |
