“Boo!” all you ghosts and goblins. If you’re afraid of what’s lurking behind those Halloween masks, I’ll give you something to really be scared of – the 30-year fixed rate mortgage rate has cracked 7%. I bet I have your attention now.
According to Realtor.com, as higher mortgage rates have thinned out the competition for homes, properties are now sitting on the market longer. That has led to a 26.9% national increase in inventory in September. However, that doesn’t mean buyers will have an easier time finding a property.
The housing shortage, which caused home prices to spike, isn’t even close to being filled. The nation still has 42.6% fewer homes for sale than in 2019 and it doesn’t look like the situation will get much better anytime soon. Even builders are spooked during the month of Halloween and are slowing down construction.
However, not much of this applies to Florida where real estate prices are holding their own. The state emerged as a housing hot spot during the pandemic, attracting retirees, remote workers, as well as those looking to leave more expensive parts of the country. Home prices in Miami increased the most among the nation’s 50 largest metropolitan areas in September, jumping 28.3% year over year. Home prices also were up 18.2% in Orlando and 17.2% in Tampa.
Time to see what Manatee County’s sales statistics are for the month of September as recorded by the Realtor Association of Sarasota and Manatee:
Single-family closed sales are down 37.5% from last September. The median sale price is $517,193, up 20.3% from last year, and the average sale price is $624,142, up 7.6% from last year. The median time to sale is 62 days. Last year it was 48 days. The month’s supply of inventory is 2.7 months.
Condos closed 35.9% fewer properties when compared to last year. The median sale price was $337,000, up 18.2%, and the average sale price was $401,183, up 24.7%. The median time to sale was 57 days compared to 41 last year, and the month’s supply of inventory is 1.9 months.
The trend of fewer sales is continuing, and prices are leveling off somewhat every month. However, prices continue to be strong compared to last year and inventory has not significantly increased. We’re still in a sellers’ market, although it appears that everyone is having a wait-and-see attitude regarding the economy.
Gone are the days of bidding wars and multiple offers on a property as soon as it comes on the market. Realtor.com reported that nationally 19.5% of sellers cut the price of their home in September. As previously stated, some buyers can no longer qualify for loans and others have thrown up their hands and given up or are switching to adjustable-rate mortgages.
As of Oct. 20, the average 30-year fixed rate mortgage was 7.25% per Forbes, the average 15-year fixed rate mortgage was 6.47% and the average 5/1 ARM was 5.42%. A 5/1ARM means the rate is fixed for 5 years and then can adjust each year after that. With a lower rate offered for an ARM, buyers have a better chance of qualifying for a loan but have to worry about the rate readjusting in 5 years to one they may not be able to afford. There are no good choices for the average buyer.
Hoping you have a fun Halloween in spite of soaring interest rates. Relax, some things you can’t control, so drink the witches’ brew and steal the kids’ candy. I guarantee you’ll feel better.
