In the real estate market, home prices are finally settling down after a period of volatility. Chad, the Chief Operating Officer for Locations, joins us to discuss condo sales and the impact of interest rates on buyers.
Chad explains that the market is starting to moderate, returning to a more normal state. Sales numbers have decreased, with a 40% drop in single-family home sales and a 43% drop in condo sales in November. However, median prices are still above 2021 prices, although the increase in pricing is starting to level off.
When it comes to competition, Chad notes that it varies depending on the neighborhood. About 4 in 10 single-family homes have been sold above the asking price, while one in 4 condos have achieved the same. Sellers need to be aware of the severity of competition in their area and price their homes accordingly.
As for current market trends, Chad mentions that there is a slight increase in active listings, similar to what was seen earlier in the year. However, the levels of price reductions are more in line with pre-pandemic levels.
Regarding mortgage rates, Chad states that they have settled at around 6 and a half percent recently. He anticipates that rates will remain in the range of 6 to 6 and a half percent going into 2023. While this may seem high, Chad reminds us that in 2008, rates were around 6 and a quarter percent, which was considered normal at the time.
Chad offers advice to both buyers and sellers. He suggests that buyers should consider alternative financing options in addition to the traditional 30-year fixed mortgage. Exploring different options can help determine what is affordable. For sellers, it’s important to be realistic about pricing and understand the current market conditions.
In conclusion, the real estate market is showing signs of stabilization, with prices settling down and competition varying by neighborhood. Mortgage rates have remained relatively steady, and buyers and sellers should carefully consider their options and affordability.
Read More: The Top 10 Most Affordable Neighborhoods in Hawaii
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