Demand Remains High while our Inventory Remains Low
NAR (National Association of Realtors) reported the lowest level of inventory (nationwide) since 1999! Most local areas have seen a double digit year-over-year price increase as a result.
However, interest rates are on the rise. The average home currently accounts for 24% of average income. Typically we say max housing affordability is 28%, so we are nearing the maximum. It will be interesting to watch the market once we surpass affordability measures and interest rates continue to climb. Do I believe we will crash at that point? No, that’s not likely. But, we may see the market finally start to slow a little closer to our local “normal”.
Leave a Reply