With interest rates already climbing we could be in store for a much slower year than anticipated. As inventory remains low our buyer demand is strong. However as rates continue to go up and the Federal Reserve says they will we can expect home prices to fall as much as 15%. Our current price per square foot is $327.00 which is up +11.6% from a year ago. This also represents the lowest per square foot price we’ve seen since April 2020.
Our Days On Market (DOM) of 22 days is more than a month ago must down -26.7% from a year ago. This means homes are selling faster but not as fast as they had been in our Spring and Summer months of 2020. What do we expect this Spring. With demand still strong and so few homes for sale you can expect a buying frenzy through the end of Summer. I think the rate hikes will affect prices and by the end of the year we will start to see buyers waiting for price drops, sellers panicking and the market stall a bit.
Our average price climbed a bit in December of 2020 to $627,000. This is a strong increase of +13.7% year over year.