The Average Sale Price was Down 3% vs the Previous Week, but Up by 0.7% over Last Year at this time. That's on the low end of what we've been seeing compared to last year's numbers.
The supply of homes for buyers to choose from was about 17% more than last year at this time. That number seems to be growing. The previous week was about 15% and the week before that was about 12.5%. If buyers don't jump into this market this Spring (contrary to our expectations), that could put downward pressure on sale prices and homeowner equity.
On Thursday, Mortgage Rates Dropped to 6% (best case scenario) for the 30-year fixed mortgage after the Fed Board's confidant messaging on inflation this week. However, after some stronger-than-expected jobs reports, there was an about face on the markets on Friday morning, pulling the 30-year back up to 6.25%, on the low end.
If rates drop into the 5% range, it could energize sales activity and help preserve equity for sellers as well as ease affordability issues for buyers. On the other hand, for buyers, it may pull more buyers into the market and make purchasing homes more competitive or even more expensive.
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