The increase in interest rates has not significantly impacted the sales prices of single-family homes.
I tend to agree with you with one exception, I would say a large part of the market hasn't been affected as far as sale prices which you agree but there are pockets of areas in our nation that had explosive price increases that have now settled down and in many cases come down in price. CA and Florida come to mind.
Northern Florida (Yulee) were we actually almost bought a home in a new community still under construction we knew this community homes and pricing inside and out, 7 trips there at the start of summer 2022. Even had a contract to purchase one but we never signed.
While we looked in this community the production builder was raising prices almost every two weeks, remember, 7 trips and during those trips every time we went back, the same house model on the same lots would go up 5 to 10K at a time. ! We would laugh about it with the site agent.
Anyway, as of today, the first phase is mostly all sold out and they are now opening the second phase. However there are still a few of the model home we loved available do to cancelled contracts, that is nothing usual with builders in any market but as of today, we can get the house we wanted on the same lot due to a cancelled contract for 15 percent less from the builder, today. A number of contracts fell through and in a normal market we would not have seen such reductions. Being the time of year the builder just wants to clear them out, they are almost completely finished.
So, the asking price is back down to the first time we were in Florida and now, as of today the builder is offering $50,000 towards the purchase of any home that is available. That 50k can be spent anyway you want, reducing home price, closing cost, interest rate buy down ect.
Anyway, just rambling on this early Monday morning before the gym. I do agree 100% the rate hikes have made the market a bit more relaxed, that was inevitable and without question its still strong, at least in the area where we just sold out home last month! Multiple offers, closed above asking price 40 days after the first day it went on the market. Its not like we priced it too cheap either, we actually tied or surpassed any selling price in our community in some cases by a wide margin per sq ft
Homes in many markets are still in short supply, I am glad where we are moving in NC the home prices from the builder are holding up strong, I kind of expected it too being it was better priced than Florida and they too just opened the next phase, just got pictures this of the home we are buying today from the site agent, coming along pretty quickly but the county is very slow with inspections and sewer equipment, so suspect we will have a completed home next month and waiting for the county to get their act together. In the meantime we are paying a high rent for an apartment!
(hmmm ... I most likely posted this already, didnt realize how many pages this thread has grown.
