Lawrence Yun, chief economist, National Association of Realtors spoke to the Santa Fe Association of Realtors on December 1, 2022 about the national market.. The Active Listing Count update was a feature of his presentation. In October 2022, there were 753,845 active listings with a year over year (Y/Y) increase by 33.5%. Compare this to what happened with the jump of the October 2022 30 year fixed mortgage rate to 7%.
Inventory is still substantially LOW compared to October in 2017, 2018 and 2019 when it ranged between 1.2mn to 1.3mn. What does this mean for Buyer and Seller mindset? Clearly a shift in buying and selling behavior is happening now as each side is facing an ongoing housing correction.
The Federal Reserve's current monetary policy to tame inflation has spiked the 30 year fixed mortgage rates from under 3% in January 2022 to over 7% in October 2022. In fact, Fed Chair Powell speaking at the Brookings Institute on November 30th finally used the word "housing bubble" to explain what happened during the pandemic and the run up of home prices. At the time, we called this a HOT market!
It appears the accelerated spike on mortgage rates is beginning to shift home prices downward. At the same time, longer days on market do allow inventory to grow. What is unknown is how long a Buyer pause behavior and Seller price offerings continue. And of course, I have no clue along with many others as to what happens next. I do know how it unfolds will vary on your local market. Stay tuned here for more about the housing market shift in Santa Fe, NM.
Let's face it, people are on the move. And when you need to move, you will buy or sell or rent a home. If you are looking for a new place to call home, you can search for homes and find valuable real estate information, facts and news there. Let's connect soon. The next move is yours. Call or text Emily Medvec at 505-660-4541 and get started. Emily knows real estate and Santa Fe.
Thank you for reading and/or commenting on this blog post. Created by Emily Medvec. Image provided by Shutterstock and graph by Lawrence Yun, National Association of Realtors
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