Where are the Buyers? That is the question we are all asking right now. It seems like our SWLA market has slowed when we usually see more of a increase in summer business.
A recent Market Pulse from the National Association of Realtors shows that nationwide economic growth is impressive but home sales are stuck. The reason is declining affordability. Renters feel squeezed out of the market as home prices are rising faster than incomes and interest rates keep climbing.
I would agree with this overview because we seem to have an inventory of newer construction high price homes sitting and a lack of affordable homes for sale for Buyers to choose from in Southwest Louisiana.
The recent spike in mortgage rates has quieted many Buyers. Once they get the mortgage note quoted to them, many are waiting it out for a cheaper rate and deciding to stay where they area.
The share of homeowners not wanting to sell to keep their low interest rate mortgage is rising along with mortgage rates.