Price Per Square Feet Status, and Interest Rates Take a Dive
Looking at Price Per Sq Ft is always interesting information.
In the below chart, we see prices of active listings (in blue) starting to stall and even fall as sellers (and their agents) start to need to be more competitive with their prices.
Homes under contract (green) looks to have slowed or stalled the climb, but not quite descended yet. We can expect that to generally follow the blue active line, with a bit of a delay.
As a bit of a side note, the red line (actual sale price) being above the brown line (closed list price) is unusual, and reflective of buyers still paying partially in cash, to make up for things like appraisals coming in low.
Those situations are usually set up during the offer phase, so don't expect that to continue as the market shift continues. Buyers are likely to have much more negotiating power in the near future.
Also! As a possible overall economic downturn begins to approach, interest rates have dropped about 1/3 of a percentage point in the last week, which will result in a good amount of savings for new borrowers. It will be interesting to see how this evolves as the economy continues to evolve.
