The current housing market has continued to adjust to a more normal, more balanced market. These adjustments have been shaped by higher interest rates, resulting in lower demand and a gap between seller and buyer expectations. This is why, more than ever before, having a knowledgeable real estate professional on your side is paramount to getting the most out of this mixed housing market.
In February, the FED gave no indication that they were going to stop raising the FED fund rate, which negatively impacted the bond market, translating to further mortgage rate hikes. However, mortgage rates are down about 2% since the end of February due to inflation easing and in reaction to fears of a banking crisis. This
has resulted in some frustration for buyers who are payment sensitive. However, by choosing the right professional who is experienced with negotiating price adjustments
and employing strategies like Interest Rate Buydowns, most buyers will still find it a fine time to buy.
Sellers have also needed to take into account these market conditions. The latest Desert Housing Report from the California Desert Association of Realtors reports an expected seasonal increase in home prices to $681,780 (an 8.2% increase year over year). Units sold were down 33% year over year. However, this metric tends to lag as most homes take 30 plus days to close escrow, resulting in the seasonal increase showing at a later date. “Days in the Market” increased with the average days on the market jumping to 49. This is much closer to pre-pandemic levels where homes averaged 65 days on the market. With the average days on the market increasing, and the number of total sales decreasing, hiring a true professional that will help guide sellers and market their home to maximize sale price has never been more important.
For sellers, choosing a real estate professional that will provide top quality service with high quality photography, strategic negotiation skills and the ability to reel in buyers is integral to a listing’s success. The Jelmberg Team is leading the charge
representing more resale clients than any other real estate team in the area with 240 transactions in 2022. If you are curious what your home is worth in the current market conditions or want to learn more about how buying down your interest rate can make your home purchase more affordable, reach out to one of our experienced agents. We’d love to help you!
