Number of homes sold in June is down from last month
Housing markets across the nation are most assuredly active this summer, and buyer competition is manifesting itself into several quick sales above asking price. While the strength of the U.S. economy has helped purchase offers pile up, the Fed recently increased the federal funds rate by 0.25%, marking the second rate hike this year and seventh since late 2015. Although the 30-year mortgage rate did not increase, buyers often react by locking in at the current rate ahead of assumed higher rates later. When this happens, accelerated price increases are possible, causing further strain on affordability.
What we’re seeing in Shawnee, though, is not a jump in market action normally seen in summer months. Our closed sales is even with 2017, however almost 20% fewer home sales closed compared to the previous month. What does that mean? In my opinion, homebuyers are being cautious and making fewer impulse moves. The number of homes going under contract (purchase offers accepted by sellers) dropped about 5% from May.
Home prices are more likely to rise than not, but sales and new listings may finish the summer on the upswing. The housing supply outlook in several markets is beginning to show an increase in new construction and a move by builders away from overstocked rental units to new developments for sale. These are encouraging signs in an already healthy marketplace.
As always, Shawnee offers an incredible value for home prices and cost of living compared to rest of the Oklahoma City metro area. I keep a close eye on our local market trends so I can answer your questions and am happy to be a resource. For a historical visualization of Shawnee housing market trends, visit the Shawnee Market Stats page of SoldonShawnee.com.
If you’d like to discuss your particular property and how recent sales affect your home’s value, just call/text me at (405) 585-6580 or email Steve@SoldonShawnee.com.