K.M. Minemier & Associates is a certified Woman Owned Small Business (WOSB) engaged in full service real estate asset management and marketing.

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Housing Bubble losing air at an Accelerating Pace

July 14, 2022

According to the article published by Shiffgold.com pending home sales have dropped significantly as well the inventory of homes on the market rose as the interest rates on mortgage rose as well.  As compared to the same period one year ago the sales dropped by 16% for the month of June.  May also dropped by 12% with April taking a smaller drop at 9%. 

For homes on the market the month of June saw a 20% jump as compared to the same period a year ago.  The month of May also saw a rise in average listings on the market of 8%. 

The mortgage rates currently are averaging around 6.4% for a 30-year mortgage.  The last time rates were this high was before the housing crash of 2008.  In mid-April rates were hovering around the 5% range.

With homes now averaging a bit longer marketing time, Sellers are now starting to have to lower their asking prices just to get foot traffic in the door.  Price reductions in the month of June went up by 50%. Wolfstreet.com said that spiking the mortgage rates along with a 40% increase in home prices over the last two years is a toxic mix.  The Federal Reserve recently pushed its base rate up 75 basis points and it is likely that the mortgage rates will likely rise another .75% by the month’s end.  This will likely stall sales even more. 


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