Real Estate Market Update for June 2023: Sanford, NC and Surrounding Areas
Welcome to our blog post on the Real Estate Market Update for June 2023 in Sanford, NC, and the surrounding areas. Today, we bring you some exciting news and insights that will help you navigate the current real estate landscape. If you're a resident of Sanford or someone interested in buying or selling a home in this region, you've come to the right place. Let's dive in!
Positive Trends and Rising Home Prices: So good news! It looks like home prices have bottomed out, and we are on the rise again. When interest rates skyrocketed, it had an impact on the market, leading to a temporary month-over-month decrease in home values nationwide. However, we are now witnessing a month-over-month increase, indicating a positive turnaround. All signs point to a takeoff in the near future, especially when interest rates come back down and demand continues to increase while supply remains low. We are confident that home prices will experience significant growth by the end of the year.
Understanding Mortgage Rates: You might be wondering why mortgage rates are still high despite predictions of a decline. Historically, mortgage rates in our country have closely followed the 10-year treasury rates, with an average spread of 1.72%. Currently, the spread has increased to 3.2% due to investor concerns about external factors like the debt ceiling. However, there are positive indications, such as the recent fed meeting and the resolution of the debt ceiling conversation, suggesting that investors may soon regain confidence. As a result, mortgage rates are expected to align with the historical spread, providing more favorable conditions for buyers.
Different Market Conditions Than 2008: Let's address the lingering concerns about another market crash similar to 2008. Rest assured, today's market is fundamentally different and significantly stronger. A whopping two-thirds of homeowners in America have either paid off their mortgage or have more than 50% equity in their homes. This reduces the likelihood of a surge in foreclosures. Additionally, over 80% of homeowners have interest rates lower than the current market rates, discouraging them from selling. Although mortgage rates are expected to decrease moderately, rates below 5% may not be available for an extended period. This poses a dilemma for homeowners with rates below 5% who wish to sell, as they would enter a higher interest rate environment.
Sanford Market Statistics: In Sanford, the average sales price currently stands at $323,000, representing a 1.1% increase compared to last year and a substantial rise from 2021. The supply of homes on the market is currently at 2.2 months, indicating a seller's market. While this has increased significantly from last year, it's important to note that a balanced market typically ranges from 4 to 6 months. It's worth mentioning that a significant portion of the listed inventory consists of new construction properties, many of which are still in the early stages of development, with completion expected in 4 to 6 months. On the other hand, the resale inventory sits at only 1.1 months, marking a slight increase from last year.
Strategic Conversations for Sellers: If you're a seller, it's crucial to have a strategic conversation to make the most of the current market conditions. While waiting for a few months may present an opportunity to sell during a frenzied market with multiple offers above asking price, you'll also find yourself purchasing in the same competitive environment. Exploring strategies like buying now and selling within 60 to 90 days can help you navigate this dynamic market successfully.
Choose iCon Agency with eXp: At Sanford's top team, iCon Agency with eXp, we are dedicated to serving Sanford and its surrounding areas. We're passionate about helping you make the right decisions when it comes to your home. If you're considering a move, we would love the opportunity to earn your business. Contact us today, and let us guide you through this exciting real estate landscape.
Conclusion: The real estate market in Sanford, NC, and its surrounding areas is showing positive signs of growth. With home prices on the rise and expectations of decreasing mortgage rates, it's an opportune time for buyers and sellers alike. By staying informed and working with a trusted real estate team like iCon Agency with eXp, you can make confident decisions for your future. Don't miss out on the exciting possibilities in Sanford's real estate market.