By Joseph Callaway
Homes in the Magic Zip Code continue to sell this summer, as of August 18. There have been 724 closings in the last 12 months. This number is down slightly from the usual 900 homes sold each year. This reduced volume is probably a reflection of the rising mortgage interest rates we’ve seen over the last year. Let’s face it, folks who qualified for a million-dollar home a year ago now can only afford $800k today. Average rates for a 30-year fixed mortgage are 6.93%.
Inventory stands right at two months. There are 135 homes for sale with 65 homes in escrow and an average of 69 homes sold each of the last six months. This is still considered tight and a sellers’ market. Three months inventory would be more balanced. However, this is an improvement over a year ago, when we had less than a month inventory and every new listing had buyers bidding against each other.
Going forward, we are looking for more of the same going into the fall. It is unlikely rates will drop. We
can hope they don’t go up, but it is anybody’s guess.
Joseph Callaway is with Those Callaways eXp Realty and has been selling houses in The Magic 85254 Zip Code for more than 26 years.