This past month has been quite the roller coaster ride for mortgage rates, with rates dipping to 5.99% early in the month and then climbing back up to near 7%. Despite higher rates, home sale prices have continued to climb, and buyers are now seeing an increase in bidding wars for homes that are priced correctly.
Home Sale Prices Climb Despite Higher Rates
We started February with a median price for resale inventory at $315,000 and by the end of the month, we’re seeing that same price come in at $339,950. That’s an 8% increase since the beginning of the month! The good news is that despite higher rates, there is still plenty of demand in the market overall.
Resale Active Days on Market Trending Downward
One sign of a healthy housing market is if active days on market (the number of days it takes for a house to sell) are trending downward. In February we’ve seen resale active days on market decrease from 22 days to 16 - a 27% decrease! This indicates that homes are selling quickly when they are priced correctly in order to maximize profit potential for sellers. With mortgage rates continuing their volatile trend, buyers should be prepared for any eventuality when it comes time to lock in their rate. Additionally, sellers should keep an eye on local trends as pricing can vary greatly throughout New Castle County.
All in all, this has been an eventful month for real estate here in New Castle County! From mortgage rate fluctuations to increasing home sales prices and decreasing resale active days on market, there is plenty happening in our local housing market right now. Whether you are looking to buy or sell a home here in New Castle County, understanding these trends will help ensure that you get the most out of your experience. Keep an eye out over the next few months—you never know what might happen next!