Currently, rates are near 7%. Last week, the average rate on a 30-year fixed-rate mortgage reached 6.92% in the latest reading from Freddie Mac. This is the highest weekly mortgage rate in more than 20 years. Last week also saw new purchase applications decline by 39%. This is the largest year-to-year decline since 2010.
These statistics significantly affect sellers who want the highest and best price for their house sale. Understandably, no one wants to reduce their prices; however, with interest rates rising, the number of qualified buyers is dropping. Sellers are reducing their prices to entice qualified buyers to purchase their houses. The CAR chart shows that 52.6% of homes for sale now have reduced prices. In light of the economic turn, this is an intelligent home-selling strategy.
In looking at the market and following the trend, I see that savvy buyers and sellers still have negotiating power.
These statistics gleaned from CAR are deemed to be accurate. Please consult with your real estate professional for more specific information as it relates to your particular real estate interests.