If you’ve been watching the market, you’ve likely seen headlines suggesting buyers have just about disappeared. But there’s a big difference between a slow market and a stalled one.
Yes, mortgage rates are still higher than most people would like. Homes aren’t selling as fast as we’re used to. But the truth is, buyer demand has been resilient. One of the best ways to measure buyer demand is by looking at pending home sales. Those are homes that have gone under contract but haven’t closed yet. HousingWire Data shows more homes are going under contract than at the same time the past 2 years. In the Twin Cities, pending sales are up 9.5% over the past three months compared to this time last year.
It doesn’t mean buyers are everywhere, but it does mean they’re still active right now. Many buyers have decided they can’t keep waiting. Whether it’s a growing family, a new job, retirement, or simply wanting a different home, life keeps moving… even when mortgage rates stay high.
“A late spring buyer rush – even with mortgage rates not budging – is an indication of pent-up housing demand and consumers’ acceptance of above-6% mortgage rates as the new normal.” Lawrence Yun, Chief Economist, NAR
Buyers need to know there are opportunities out there right now! Sellers need to position their home well, keeping condition and price in check. Although typically a slower month, August may prove to be a touch more active than usual this year.
Stay Cool, Kristin & John
