OCTOBER 2021 ROYSE CITY HOMEOWNER REPORT
We will start with interest rates.
We are still hovering around the 3% mark. About a week ago they went over 3% but then came back down. Rates for a 30-year fixed rate mortgage currently average 2.99% with .7% in fees and points. Freddie Mac, also known as the Federal Home Loan Mortgage Corporation, predicts mortgage rates will continue to increase modestly which will have an impact on pricing and demand.
As far as the number of buyers in the market, we’re continuing to see decreases in mortgage applications. It’s 13% lower than it was this same time one year ago. More good news for buyers who are still in the market to purchase.
So let’s dig into the data for September and see how the market performed.
For this local market data, I use numbers from single-family home sales in Royse City. These numbers are based on sales data from September.
The average sales price is at $375,244. That’s a 24.1% increase from one year ago.
The number of homes for sale is at 158 homes. We are up 37.4% in the number of homes available to buy. That is excellent news for buyers.
Royse City had 73 sales in September, a 3.9% decrease over last year.
Homes sold 55.6% faster in September than they did last year, and we averaged just 8 days on the market.
Our months of inventory went up from last month and we’re at 2.2 months of inventory. This number tells us that based on current demand, if no new listings came on the market, it would take a two months for all the current inventory to be purchased. So we’re still, very much in seller’s market territory with only about ten weeks of inventory but we’re slowly inching our way up.
We listed 128 homes in September which is 64.1% more than last year.
Our average sales price per square foot went up from last month and is at per square foot, a 32.8% increase from last year.
The Takeaway
So, is the market crashing. Let’s look at the facts: We have rising interest rates, more supply on the market, more time on the market before homes go under contract, more months of inventory and fewer buyers. BUT, prices are still on the rise. These data points tell me that we aren’t crashing, we’re softening. I mean, since prices are still rising, we aren’t even correcting in the market yet, and I’m not so sure that will even happen. So it’s still a great time to be a seller because the market is still on your side.