Home buyers in Oakland County, Michigan have had a time trying to purchase a new home earlier in the year with all the competition, then the mortgage rate increases made things even harder for home buyers, Mortgage rates were at their recent peak in October, despite elevated rates, new home buyers were active, pushing sales of newly built single-family homes higher than the month before. This improvement was well over expectations as economists polled by Reuters predicted a month-over-month decline in October.
Buying a Home and Predictions
Despite the prediction of a month-over-month decline home buyers have been active in purchasing new homes n fact, according to recently released numbers from the U.S. Census Bureau and the Department of Housing and Urban Development, new home sales rose 7.5 percent above September’s rate and were down just 5.8 percent from last year at the same time. Home buyers seem to be taking advantage of the peak mortgage rates as some home buyers have been placed on the sideline as rates were climbing and inventory was increasing, In Oakland County, Michigan we have seen home sellers reducing listing prices to accommodate the rising interest rates making it low hanging fruit for home buyers to easily grasp.
Regional Home Sales
Regionally, sales spiked in the Northeast and South, were flat in the West, and saw their only decrease in the Midwest, where they fell 34 percent. The surprising gains are encouraging, especially at a time of year when home buyers are typically less active. Also in the report, the median sales price of new houses sold in October was $493,000. The average sales price was $544,000.
Bottom Line in Home Buying
The bottom line is that although mortgage rates have spiked in October, there seems to be some settling in the rates, price reductions and inventory that is great news for some home buyers that are activity looking for a new home. Although the predictions of the housing market are grim sometimes, this time of year is the perfect time to buy a home as there is less competition along with serious and motivated home sellers ready to make a deal. If you are a home buyer and are on the sidelines due to predictions and forecast of the housing market it may be time to re-think your home buying plans.
Source: https://www.census.gov/construction/nrs/pdf/newressales.pdf