Friedrich Real Estate Report: October 2022

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The period of ultra-low mortgage rates and Federal Reserve policies of injecting liquidity into the financial markets during the pandemic to stimulate the economy has ended.  Now monetary policies have been reversed to tamp down the inflation that resulted from the “easy money” conditions and this change in posture is having consequences.  The 3% interest rate that people were able to lock in during that two-year stretch has moved to 7%. Individuals and families are now reluctant to give up the attractive rates they are locked into, and are staying in their homes. Builders, too, are putting fewer holes in the ground due to the higher rates.  A prolonged period of low inventory will likely persist.


Ames has hovered between 60-80 active listings since May, which is about 50% of what was considered normal before the pandemic. The reduced inventory means buyers have to move quickly, so the median days on market is still around a week and the average days on market is still around a month.


The reduced inventory and still relatively high buyer demand in the Ames area means that the median price of homes in Ames are still increasing. Since the beginning of the year, home prices have increased around 5%.


In this trickier than normal market, if you’re a buyer or a seller, it’s especially important that you reach out to your Friedrich Realtor and find solutions to your real estate needs.  Buying? Friedrich agents collaborate with one another to identify potential homes coming to market, and a network of local lenders to help you find the lowest rate possible. Selling? Friedrich agents work together to inform and match up active buyers with your home! Let the team approach at Friedrich help you accomplish your real estate goals!

Nov 16, 2022 | Add a comment | Buyer Blog, Seller Blog

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