The velocity of change in the property market is breathtaking. Zero Down has created a week real estate market analysis in Louisville based on data from Redfin to keep you up to date on the market. For the four weeks ended March 31 6, 2022, these figures represent the most recent available data. For each data, metros having more than 50 residences sold throughout this timeframe were evaluated.
This week’s news are dominated by real estate, and for valid reason. Data released on February 23 shows that 70% of the homes listed for sale in January 2022 ended in a fierce battle between purchasers, setting a new record high for the housing market. This year’s rate was nine percentage points higher than last year’s rate.
This is fantastic news for sellers, but a setback for purchasers who want to get into the market.
Sellers can able to command greater prices for the homes due to a scarcity of inventory and high demand. An increase in the average purchasing loan size for traditional financing, which hit a new high of $453,000 in early February as a result of bidding wars, is also probable.
Aside from historically high property prices and a scarcity of available inventory, bidding wars are yet another obstacle for would be homebuyers who have already been forced to contend with rising interest rates and historically low inventory levels in recent months.
Homebuyers who are hoping to get a great deal on a property in the next several months are in for a bumpy ride.
Freddie Mac said on Thursday that average mortgage rates had risen to their highest ranks since May of this year, just in time for the start of the home-buying season.
With Redfin data, ZeroDown created weekly real estate reports in Louisville to help you keep up with the latest trends. In the 4 weeks ending March 13th, the following data is available: For each data, metros with and over 50 residences sold throughout this period of time were evaluated.
The Mortgage Bankers Association’s Builder Applicant Survey data for February 2022 shows a 3.9% decrease in new home purchase mortgage applications between February 2021 and 2022. It’s also the first decline of 1% since the beginning of the year. According to the MBA, new home sales fell in February for the third month in a row, at 791,000 units sold.
Federal Reserve Chairman Jerome Powell advocated for an interest rate increase of.25 percentage points in early March in an effort to curb inflation. Wednesday, officials voted to raise interest rates for the first time in more than a year and to increase them six times by year’s end. That will lead to a rise in the cost of borrowing and credit for many Americans.
Mortgage rates for 30-year fixed mortgages rose to 4.16 percent as of Thursday, compared to 3.09 percent for the same period in 2013.
After exceeding 2019 levels last week, average mortgage rates have continued to rise. The average 30-year home loan rate in the United States as of Thursday was 4.53 percent.
ZeroDown has created a week real estate market update for the Louisville, KY metro region utilising Redfin data to help you keep on top of the market. The data represents the four weeks ended on March 20th of this year. For each data, metros having more than 50 residences sold throughout this time period was evaluated.
At a conference on Thursday, Federal Reserve Governors Christopher Waller highlighted the effects of the COVID-19 pandemic on the real estate sector and how policy has affected the cost of housing for homebuyers. Waller told conference goers that he is optimistic that the issues that have inflated prices because to the pandemic, such as high demand and a lack of available properties and space, would subside within the next year.
In the meantime, Waller warned that the housing market is likely to keep increasing the burden it places on the average homeowner, noting that the amount of household income dedicated to housing will only climb. This figure has increased from 24% in 1970 to 35% in 2019; this is a significant change.