Maggie’s Market Minute — April 2022

Spring has officially sprung and the real estate market results for Q1 are in!  Here are the latest real estate trends kicking off Q2: Strong demand, high velocity, low inventory Sales in Q1 of 2022 were robust for all property types, but the supply of single family houses was especially low. The number of active listings were down 4.4% compared to Q1 2021 and overbidding continued to climb.  However.........there's a wrinkle By the end of Q1, mortgage interest rates skyrocketed 50% since the beginning of the year, with a particularly large jump in March.   Housing (un)Affordability gets a double hit When both interest rates and home prices soar, home affordability takes a double hit. The increase in mortgage rates caused a 34% jump in monthly payments compared to Q1 2021 (outpacing the jump in housing prices).  Rapidly rising interest rates typically cool the market Housing statistics are a lagging indicator - buyers who closed in March typically locked in their interest rates in Jan or Feb. So the effects of the jump in interest rates are just beginning to filter into the market.  In the 2nd half of 2018, we saw a cooling market after a rapid rise in rates. Can we expect the same thing to happen in Q2? Complete Market Report Are you, or someone you know, ready to move to what's next? Let me know - I can help. Keep well, Maggie Maggie Visser Top 4% SF Realtor DRE: 01925742 M: 415.793.3470 maggie@maggievisser.com marketingcenter-sfbayarea-sfcityproper