The Housing Market Can't Make Up Its Mind

Just when you think the housing market is starting to make sense, it throws us another curveball.

Keep in mind, the below are national numbers! Silicon Valley loves doing its own thing; one neighborhood might have homes sitting for weeks, while another has buyers fighting like it's the last parking spot at Costco on a Sunday.

Buuuuut...

Mortgage rates recently dipped from 7.50% to 7.41%. Not exactly champagne-worthy, but we'll take it! Surprisingly, mortgage applications still dropped 5.3%, and applications to purchase homes fell 7.3%. Apparently, buyers are waiting for lower rates, cheaper homes, and maybe someone to invent a money tree. Come ooooooonn money tree!

Meanwhile, Treasury yields are climbing, the Fed can't agree on its next move, and pending home sales dropped 7.3%. Basically, the market is sending mixed signals.

For buyers: Less competition could mean more negotiating power, seller concessions, and fewer bidding wars. Sure, mortgage rates aren't ideal, but not having to compete against 15 other offers is a pretty nice consolation prize!

For sellers: Homes are still selling, but presentation and pricing matter more than ever. The days of throwing a sign in the yard, snapping a few blurry iPhone pictures, and expecting $200K over asking aren't something you can count on anymore. Imagine that!

As always, if you're curious about buying, selling, or what's happening in your neighborhood, just contact us!