According to the National Association of Realtors have reported a strong jump of 14.5% for closed sales in February which represents contracts signed in December and January. Buyers are extremely sensitive to interest rates and any drop in interest rates causes a quick spike in signed contracts as potential buyers take advantage of the drop in interest rates. This was an unexpected surprise as interest rates continue to hover around 7% slowing the red hot real estate market. Prices rose 0.16% for February which is the strongest month of growth since May of last year. Home prices are still rising due to the low amount of homes listed for sale and are now only 2.6% off of their peak prices in June of last year.
Very conscious of the fluctuating interest rates, homebuyers take advantage of lower rates. But not all real estate areas are equal for growth. Hot markets like Miami continue to see growth as people relocate to the Sunshine State. Other areas that are still in an upward trend are Cincinnati and Columbus, Ohio. But it is not rising everywhere with some of the hottest markets during Covid have cooled down a lot and are still in downward trajectory. Markets like Austin, Las Vegas, Salt Lake City, Seattle and San Francisco are still cooling down.
Buyers who take advantage in the pause in the market have the best chance of getting a good deal. While the market may seem scary, those who have a long term goal and are not afraid of the turbulence of the market may be able to get better deals when going into contracts. Sellers are willing to give more as it is a buyers market. The ability to negotiate is better in this kind of environment for Buyers then Sellars.
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