Home Buyer Demand, While Possibly Reduced Due To Higher Interest Rates, Seems To Still Exceed Supply
Scott P. Rogers
This is totally anecdotal at this time, so I'll see what the data seems to indicate when I compile my market later this month, but thus far..
Home Buyer Demand, While Reduced Due To Higher Interest Rates, Seems To Still Exceed Supply
That is to that I suspect...
[1] Buyer demand is decreasing, somewhat, due to higher mortgage interest rates.
[2] The amount of buyer demand in the market is still greater than the amount of seller supply.
Case in point - the anecdote - would be two very (!!) similar properties that came on the market over the past few months...
The first property came on the market when the average 30-year fixed mortgage interest rate was around 4.3%. There were six offers within 72 hours.
The second property came on the market when the average 30-year fixed mortgage interest rate was around 5.1%. There were three offers within 72 hours.
So... yes, I think higher rates will reduce buyer demand, but that reduced demand might very well continue to exceed available supply for some time to come!
