Happy Monday!

The June stats are in, and it seems like we finally see things balancing out a bit on the market. This is not the time to panic or call for a crash, but it is time to take note of how price appreciation is slowing down.

As an example prices rose in Carbondale by 114% from April 2021 to April 2022. They "only" rose by 21% between June 2021 and June 2022.

As we seem to be experiencing a shift in market conditions, it's important to understand the timing of things, and to acknowledge how real estate stats are lagging behind by about 2 to 3 months.

The June stats that we are looking at right now, July 18th, compute numbers of all transactions CLOSED during the month of June. Knowing that a transaction usually takes 30 to 45 days to close, a transaction that closes on June 1st may have been initiated as early as April 15th.

The rise in interest rates have been the main driver of this slowdown. With the understanding of how the stats can lag behind, let's take a look at how interest rates on the 30 years fix mortgage nationwide changed since April:On April 15th the average 30 years fixed mortgage interest rate was hovering around 5%. Today it's at 5.5%.The difference isn't material for most buyers. Though as interest rates were rapidly rising in April, some buyers rushed to lock in a rate and buy then, by fear of rates getting even higher in the future. We don't see as much of that type of fear right now.Overall, the slowdown visible in the June stats has probably slightly accentuated by now. Real Estate is mostly local, and each location is composed of different segments within itself. Homes in the top tier of each location are the ones that seem to have slowed down the most. Anything in the lower end of the price range seems to remain highly competitive in our market. It's also worth noting that interest rates are only part of the story. Ultimately price is shaped by offer and demand. In our area specifically the fundamentals are extremely robust. People want to move into our valley and there aren't enough homes to welcome everyone. We are surrounded by public and unbuildable land. As long as the inventory of homes for sale remains low, prices will sustain despite affordability issues or buyer sentiment.

Call or contact me if you want to discuss these stats!

I hope you are having a great Summer filled with fun times with friends and family, and extraordinary adventures out there!