Where’s the precipitation?! We went from the best snowfall ever in December to one
of the driest Januarys on record. We’re back to praying for snow and making the
most out of the base we have so far. See our weekly email for snow activities that
are still going strong!
As 2021 finished up it looked like the real estate market might have been
moderating a bit; demand was backing off and inventory was building slightly. That
definitely didn’t last! As soon as the holidays passed it was back to game on! Active
listings hit a new all-time low in early January at 293,000 active single family homes
available. For comparison, at this time in 2016 there were over a million active single
family homes listed! Inventory is a major predictor of the market and with more and
more investors buying up properties for rental income the curve isn’t likely to move
much in the coming months.
Mortgage rates jumped up to 3.5% this month. What does that mean for the real
estate market? Well, we are still low as the 10 year average is 3.9%. The question
is, at what point do buyers hold off due to a rise in mortgage rates? Typically this
happens when the rates rise above the long term average but buyers may be more
sensitive to the rising rates because of the significant increase in average selling
prices. The combination of the inventory curve along with mortgage rates in the
coming months will be our gauge for predicting the market this coming year. As of
now we are still riding the wave of the incredible sellers market! I just sent out my
in-depth market update to everyone on my mailing list so you should be receiving it
any day now. If you would like to be included in my quarterly updates please reply
with your current address and I’ll add you to my mailing list.
If you have anything you want to share with our community please let us know so
that it can be included in our weekly email newsletters. We at the Zager Group are
honored to continue to serve our community and are available if you have any
questions or if we can provide you with any services, please feel free to reach out
anytime. Thank you for the opportunity to serve you and for your continued trust and
support!
Thank you!
Craig Zager & The Zager Group