Friday Update May 27, 2022
Today we have 759 single family homes on the market. 720 last week.
Rates are slightly lower than they have been over the last month which is taking some of the tension out of the market and helping buyers a bit.
The yield on the 10 year T notes is around 2.75%, significantly lower than the peak we had about 3 weeks ago at 3.14%. Keep in mind a half a point move in interest rates is like 5% buying power.
1139 sales month to date here in our local MLS. That puts the rising inventory into perspective as we have less than a month of homes on the market. And like 6,000 agents "trying" to sell them.
Month to date median sold price is falling. We hit a peak of 500k earlier in the month, median right now for the whole month of May is 486k. I'm guessing the spike in rates in April and early this month is resulting in some softness in prices. Will this last? We will see.
My projection is for us to finish the year with a median price around 480k, time will tell.
Lumber dropped as low as $650/1000 board feet earlier in the week but just bounced back over $700. Pre 2020 levels would be $350ish, last May we saw close to $1,800. Funky and very volatile materials market still, although it seems that maybe the worst is behind us?
Still seeing a pretty competetive market that's certainly still in the seller's favor. But it is softening up a bit and there are windows of opportunity for buyers to take advantage of. Like little glimpses here and there of a more balanced market that we've all dreamed of.
I'm sorry that I don't have time for a full blown rant today. Dad stuff. Have a great holiday weekend.