Here locally our market is probably like most, on fire; well that’s getting a little carried away. Nothing will be like the yesteryear of 05 – 06′ when things were just out of control with housing. With that said there is no mistaken that in my local area of Charleston South Carolina the housing market is booming and dare I say it definitely a seller’s market. With such a lack of inventory (good inventory that is) seller’s are winning the battle of price wars between buyers, and buyers are paying. Agents like myself are seeing bidding wars, homes sell over list price, and multiple offer situations on a regular basis which does not bode well for prospective buyers. Although not like it was in the ‘boom’ if you’re considering selling this is without question the time to be doing it. Rates are hovering just above 4% and that is still CHEAP money, having spent 13+ years as a mortgage expert I know the trend, and these low rates can not and will not last forever. Trust me.
Last week CNBC reported that although mortgage applications were on the decline this is primarily because of refinancing. Purchases aren’t slowing down in the foreseeable future, although buyers aren’t as willing to “put their necks out” like they once were before the housing bubble burst. Despite future expectations, though, mortgage applications to purchase a home also fell, down 3 percent from the previous week but were still 14 percent higher than the same week one year ago. Home sales have not been as strong as some predicted this spring, but that may have more to do with tight supply than higher interest rates.