It has caused an interesting split in the growth of sales of homes in different prices ranges.
According to the Cromford Report, “Sales during June were substantially higher than in June last year, but the gains were almost entirely in the price ranges over $200,000. Under $200,000 there just is not enough supply to generate any growth in sales.”
In other words, as much as people want to purchase homes under $200k, sellers don’t want to sell them. Whereas, in higher price points, the sellers have been motivated by the increase in buyer interest and they put their homes on the market.
My guess is that this situation could become more acute if interest rates continue to rise. There will be more homes for sale over $200k, but they will be less affordable for an entire sector of the buying public.
The lesson is to plan ahead. Even if you don’t plan to purchase for six months, we should get together now to build a strategy. Please give me a call at 602-456-9388.