Are the scales tipping in favor of real estate buyers?
Will the Boston condo market shift this Fall in 2022 ?
The recent rise in Boston condo mortgage rates are slightly tipping the scales in favor of buyers. Sellers are losing the upper hand as the market starts to become more balanced, but it comes at a price, homebuyers have more power than they’ve had in a while, but unfortunately it’s becoming increasingly hard for them to make use of that power due to affordability pressures associated with rising mortgage rates.
Is Boston condo inventory rising this Fall season?
Yes, Boston condo buyers are seeing more Boston condo for sale inventory. However, buyers are paying higher monthly mortgage payments as mortgage rates continue to climb. Nationally, the months supply of homes increased to 2.9 months, the highest it’s been since July 2020.
But that doesn’t mean supply will continue in that trajectory. Boston condo sellers are still reluctant to put their homes on the market so from a historic perspective Boston condo for sale inventory is still low.
What’s happening with Google home searches?
Google searches for “homes for sale” during the week ended Sept. 10, down 26% from last year. Its Homebuyer Demand Index, which measures requests for tours and other services, was down 11% from last year.
How do home mortgage applications compared to last year?
Mortgage applications were up 0.2% week over week but down 29% from last year as the 30-year mortgage rate rose to 6.02%, the highest level since November 2008.
How fast are residential homes selling?
Thirty-four percent of homes that went under contract had an offer within the first two weeks, with little change from the previous four weeks but down from 41% last year. Thirty-four percent of homes sold above list price, down from 48% last year.
What is the monthly payment for a nationwide median price home?
The report also noted the monthly mortgage payment on a median asking-price home was $2,385 at the current 6.02% mortgage rate. That was up 42% from last year’s $1,674 when mortgage rates were 2.86% and down from June 19th’s peak of $2,460.