This Market is Interesting…
You might wonder what segment of the market has been hurt the most by the high-interest rates. If you think about it, the average family with two working professionals who have a household income of $250,000/year can qualify to borrow about $1,000,000 at the current 7% jumbo interest rate. So, depending on how much cash they have to put down, they top out in purchase price at about $1.2 to $1.4 million. When rates were at 3%, they could have borrowed about $1.8 million. Out of the 13 sales under $1.4 million, 15% were cash. For your average 2-income family to buy over $1.4 million, they need a lot more cash. That is reflected in the stats as 69% of sales over $1.4 million in August were all cash and 100% of the sales over $2.48 million were.
So, if you split the market at $1.4 million, there are 15 active and we are selling 13 a month. Over that number, there are 26 active listings and we sold 13. So, if your house is priced under $1.4 million, your odds of selling in about 30 days are good. Over that number, you will need to be a little more patient. However, for both groups, it is still a Seller’s market.
If you have any questions about the value of your house and the odds of selling it, please don’t hesitate to reach out. We are always happy to answer your questions.
Your call to The Bridge Team at 303-331-4562 will be warmly received.