Home sales have slowed slightly due to rising interest rates, but the local market remains hot.
Kerry Rosselet, president of the Citrus County Association of Realtors, said “we’re still looking for a very strong sales year.”
“The market has adjusted to more normal and healthy volume with 1.3 months of stock,” she said.
Kevin Cunningham, broker-owner of RE/MAX Realty One, said his office saw more single-family gated home sales fall in April to a total of 381, down 10.6% year-over-year. .
“We attribute this decline to the rapid rise in mortgage interest rates in March and April when these homes were on contract,” Cunningham said.
However, the median price of an existing single-family home in Citrus County continues to rise. In April, the median price was $295,000, a 34.1% increase from a year ago.
“We believe that as we enter the second quarter of 2022, rising interest rates and inflation concerns will start to moderate price growth and this is something every homeowner should watch out for. “Cunningham said.
Lawrence Yun, chief economist of the National Association of Realtors (NAR), agrees.
“If mortgage rates stabilize at around the current level of 5.3% and job gains continue, home sales could stabilize in the coming months as well,” Yun said. “Home sales in 2022 are expected to fall by around 9%, and if mortgage rates climb to 6%, sales activity could drop by 15%.”
But for now, house prices are not in danger of falling significantly, he said.
“There is an ongoing housing shortage, and properly listed homes are still selling quickly – usually seeing a signed contract within a month,” Yun said.
Here are the highlights from the April report (with last year’s numbers in parentheses):
– Closed sales: 381 (426)
– Median contracting time: 8 days (12 days)
– New registrations: 444 (378)
– House inventory 375 (292)