October 2022 St Joseph Housing Market Report
David Dorton: Okay, well, Lorrie, it's time for our St. Joseph October housing market update. So what have we been seeing this last month in the housing market?
Lorrie Ramseier: Well, September did bring some significant changes in the market. Our closed sales were down about 25%. And I think everybody knows that interest rates are going up. So they're up to 6.5 to 7% right now. And as people adjust their expectations to that being what is available right now, that just takes a little bit of time.
But I will say that overall, that's still not a bad rate. Our 40 year average is about 8.5%. And when I bought my first house, it was between 12 and 15%. So I know that sounds outrageous, but it really did happen at one point. But that did affect our September numbers. So for September, the closed sales were down about 25%. And then we did see our days on market increase for September as well. So we are now seeing things become a more balanced market, which is not a bad thing at all.
So this is actually better in the long run for everybody so that you're not having to lose out in a bidding war and things like that. So as the as the market balances out, that's going to be a much better time for you to buy a home. What are you seeing out there David?
D: So one of the things that I will touch on is kind of the inventory and the supply of what's out there. So we're not necessarily expecting to see house prices plummet or go down necessarily, but kind of like you said they're not necessarily going to go above the asking price like they were. It got outrageous there for a while and people were worried that they were just going to have to show up with a bag of cash and make offers above asking price. So that is going to start balancing out and that's going to be good news for people who are still looking to buy.
And then you mentioned that interest rates are not even at the 40 year average, being blow 8.5% still. So it's a great time to buy while you can still get good interest rates at a lower number and a little bit less competition.
However, inventory is still low and demand is still high, therefore, housing prices are up and they're going to stay where they are. And people right now that are looking to sell have more equity in their house than they've ever had before. And so if they're looking to make a move, getting to something that is a little bit more of a dream home or long term home for them, they've got good equity and they can still sell and they can get into that bigger home with a little bit less competition and not see so much chaotic “above asking price” scenarios and stuff like that.
L: Yes. It makes selling a little bit more comfortable.
D: For sure. Well thanks, Lorrie. That's good stuff. If people have any other questions, where can they find this?
L: They can check us out on our website at Ramseiergroup.com, or call us at the number listed below. Thanks, David.
Here at Ramseier Group of Keller Williams, our goal is to provide you with the best real estate experience possible in St Joseph, MO. If you are buying a house, selling a house, or investing in real estate, we’ve got you covered! To get a free custom home valuation report prepared for you by a real person and not a computer. Call us at 816-307-9541 or fill out a contact information form here.