A monthly newsletter brought to you by McNulty Real Estate Services, Inc.
VOL. 7, ISSUE 7 7/27/2023
Happy Summer from the White Mountains in New Hampshire where Patrick and Tom are working on hiking the Appalachian Trail…Superb real estate to explore! Patrick says to watch out for a big comeback for Berlin, New Hampshire, a town where our Great/Grandfather grew up…He’ll be its new “Whisperer” from the midwest.
Please see the following recent summary from the Indiana Association of Realtors. It very adequately reflects what we are seeing in central Indiana, except for the fact that sales up to $450,000 seem to be slowing a bit due to the effect of higher interest rates (even though they are still below the 50 year historical average of 7.9%). We don’t see a significant drop in these coming over the course of the next couple of years at this time, just FYI.
Market Update: Cautious sellers continue to hold statewide home sales below 2022
|
- Statewide existing home sales totaled 7,967 in June, 13% below 2022 but 7% ahead of May.
- June continued a familiar pattern for the first half of 2023: Homebuyers (especially those with the budgets to handle higher mortgage rates) are getting back into the market but sellers have been more cautious – new listings (9,303) fell 23% behind June 2022.
- Elevated mortgage rates (averaging 6.5% year-to-date) seem to have impacted sellers more than buyers in 2023; most current homeowners have sub-4% loans and seem more inclined to stay put or postpone moving plans instead of trying to find and finance their next homes at rates near 7%.
- So while sales are down 14% through the first six months of 2023, new listings are 17% below 2022 and falling faster since the start of the year; this has led to tighter inventory and slowing sales among buyers who seem eager for new options.
- On the other hand, homebuyers with the budgets to deal with current mortgage rates are driving demand at higher price points: Year-to-date sales below $300,000 have dropped 18% from the first half of 2022, while sales above $300,000 are down just 6%.
- Overall, sales are happening quickly (averaging less than a week from listing to pending since the end of March) and statewide sale prices continue to rise – hitting $257,000 in June, representing 98% of original list price – showing healthy demand in certain segments of the market and the continued impact of Indiana’s housing shortage.
|
|
|
