ROANOKE, Va. (WDJ) – Home sales are starting to slow in the Roanoke Valley. Homes stay on the market longer, making it easier to send offers to buyers.
A landlord with RealStar Realtors explained how there was a slowdown in home purchases compared to June 2021.
“Some buyers with a big increase in interest rates may jump off the buying train and wait to see what happens,” said Bob Hartman.
The buyers’ freeze has caused home sales to drop 16.7 percent from last year. 672 homes were sold in June 2021 and 560 homes were sold in June 2022.
The market leader in mortgage lending explained the rise in interest rates to prevent buyers from overpaying and leaving homeowners out.
“Rates went up about a month and a half ago, and they went up to 1%, and that scared a lot of people out of the market,” said Dave Henry, NMLS 272168. “Now that rates are going down, it gives people a little more comfort level and gives them a little more opportunity to afford a home.”
With homes not flying off the market as quickly as they used to, the president of the Roanoke Valley Association of Realtors explained that many sellers are stepping up to increase their listings.
“There are very few people willing to pay $30,000 for a home or $30,000 for a home,” said Ashley Wainwright Donahue. he said.
The total supply of housing is still lower than last year, and the average prices are about 18%. The median home price in June 2021 was $245,000 compared to $290,000 in June 2022.
Homes are selling quickly, Hartman said, but buyers now have some breathing room.
“I think it gives them an opportunity to not run too fast and get into buying instead,” Hartman said.
Realtors also explained that as homes stay on the market longer, the industry is moving toward a more balanced market between buyers and sellers.
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