Interest rates rise, but Dayton-area real estate market remains hot for sellers

Dayton Realtors said the total number of single-family homes and condominiums available in the MLS stood at just 945 at the end of the month, representing less than a month’s supply, based on the pace of sales of ‘april.

To exploreShould I buy a house in this crazy real estate market?

Duncan-Heart said the prices of materials and other goods used in home construction are contributing to higher home prices. In addition, rental prices are also increasing, she said.

Lack of inventory caused problems for buyers.

Duncan-Hart said it’s frustrating for first-time buyers to find a home they want, make an offer, and find themselves in a bidding war with other potential buyers. She also said sellers don’t participate in any “extras” when selling a home, such as home warranties or help with closing costs.

“We need more homes and new construction,” Duncan-Hart said. “If you can afford to buy a house, you should because it’s always better than renting.”

His advice to homebuyers was to “hang in there”.

Duncan-Hart said potential buyers should work with an experienced realtor and “have their ducks lined up and ready with a pre-approved finance letter and down payment, as this is a fast-moving market.”

Another real estate agent, Austin Castro, agreed that it was still a “seller’s market”.

“There has been a slight downturn in the housing sector due to rising interest rates, but you still have a group looking for homes and rates are more important than prices,” he said. he declares. “It makes some people think twice about buying a house.”

Castro cited the ease of the housing market and a decline in the stock market as other reasons for the reluctance. “It’s not as crazy as it was six months ago,” he said.

With interest rates now above 5%, Castro said that’s still a good rate considering the past 30 years of interest. He said that although rates have risen, many potential buyers are locking in their interest rates now if they are making a long-term purchase for seven to 15 years.

“And if interest rates go down, those buyers can also refinance,” he said.

Castro said few homes have been on the market long and most have multiple offers from buyers.

“It’s a bit slow, but we absolutely don’t have a recession like we had in 2008,” Castro said.

Average long-term mortgage rates in the United States fell slightly this week, but interest on the key 30-year loan remains at high levels for a decade, according to the Associated Press.

Mortgage buyer Freddie Mac reported Thursday that the 30-year rate had slipped to 5.25% from 5.3% last week. In contrast, the average rate was 3% a year ago.

Earlier this month, the Federal Reserve stepped up its fight against the worst inflation in 40 years by raising its benchmark interest rate by half a percentage point and signaling other significant rate hikes to come. . The Fed’s move, the most aggressive since 2000, will lead to higher costs for mortgages as well as credit cards, auto loans and other borrowing for individuals and businesses.

Last week the government announced that US producer prices rose 11% in April from a year earlier, a sizable gain that indicates high inflation for consumers and businesses will persist In the coming months. In a separate report last week, government data showed consumer prices jumped 8.3% last month from a year ago, just below the 8.5% rise year-over-year in March, which was the highest since 1981.

Home ownership has become an increasingly difficult aspiration lately, especially for first-time buyers. Along with soaring inflation, rising mortgage rates and rising house prices, the supply of homes for sale continues to be scarce.

Some economists predict that home sales this year could fall by as much as 10% from 2021 levels.

“Economic uncertainty is at the root of mortgage rate volatility,” said Sam Khater, chief economist at Freddie Mac. “As a result, buying demand is waning and homebuilder sentiment has fallen to its lowest level in nearly two years.”

Khater noted that builders are also facing rising costs.

The average rate on 15-year fixed-rate mortgages, popular among those refinancing their homes, slipped to 4.43% from 4.48% last week. This rate was 2.29% a year ago.

The Associated Press contributed to this report.


Dayton Real Estate Sales – April 2022 vs April 2021

  • Sales of houses and condos: 1,312 residential sales – down 3.32%.
  • Average sale price: $245,429 average residential price – up 9.88%.
  • Median sale price: $212,000 average residential price – up 11.58%
  • New listings: 1,754 new residential home listings – down 0.4%
  • Homes sold year-to-date – down 1.62%

Source: Dayton Realtors

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