Good News for Seller’s – We are Still in a Seller’s Market and Home prices are holding near record highs, but sales have slowed slightly. Nationwide, Redfin Reports that roughly 60,000 home purchase agreements fell through in June or about 14.9% of homes that went under contract in June. In our brokerage we have been fortunate and only had one contract cancel recently but this could be an indicator of things to come. Redfin reports this number of cancelled contracts is the highest percentage since March and April 2020 when Covid 19 ground the housing market to a halt.
There are a number of reasons that contracts fall through, inspection issues, a life event, and now the main reason, rising mortgage rates are forcing some buyers out of the market. If rates were at 5% when an offer was made but reached 5.8% by the time the deal was set to close, the buyer may no longer be in a position that allows them to qualify for a loan.Since the housing market has cooled in recent weeks, as the Federal Reserve has boosted interest rates to quell inflation, house hunters have a bit more freedom to seek concessions from sellers, but higher rates also make housing less affordable.
Bottom Line, if you find a house you love, make an offer, and joyfully enjoy your new address. Historically home values hold and if you remain in a home for over 5 years, and you love living in it, you cannot go wrong.