WATERTOWN, New York (WWNY) – It was an issue last year, and it’s an issue now. In 2023 mortgage rates were high – 8 percent or more at one time.
It could be a reason why the total number of homes sold in Jefferson County was down last year by nearly 250 compared to 2022, and down 500 from 2021.
In 2023, 1,126 homes were sold; 1,369 in 2022, and 1,626 in 2021.
Current mortgage rates on a 30-year fixed loan are around 7 percent. Last fall it was around 8 percent- some of the highest rates since 2006. Lance Evans with the Jefferson-Lewis Board of Realtors says it can mean fewer people are looking to sell.
“Less choice means first of all the prices are higher. Less choice also means that it’s harder to get a home,” he said.
The COVID pandemic was rough on the housing market but according to Evans, things are steadily improving. In 2023, houses spent less time on the market, and significantly fewer homes were for sale compared to 2022.
“Things are getting a little bit more healthy. It’s still a seller’s market, not a buyer’s market. There’s more buyers than there are sellers,” he said.
One thing that isn’t improving for buyers is the average price of a home. Since 2020, property costs have jumped significantly each year. In 2023, the average cost of a single-family home was nearly $200,000 in our area. As for mortgage rates, Evans says there’s a chance they could go down this year.
“The Fed (Federal Reserve System) has signaled that they may be dropping them later this year. I don’t know how much though since I’m not with the Fed and my crystal ball is cloudy,” he said.
In Thursday night’s State of the Union Address, President Biden proposed a mortgage relief credit that if passed could help first-time home buyers contend with interest rates.
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Source: wwnytv.com