Everyone is curious about how the real estate market is responding to higher interest rates these days. With rates back to the norms of the early 2000s, monthly payments for new mortgages are certainly higher than they would have been just a year ago, so will housing prices fall?
Low inventory continues to be the trend and housing prices in Northfield are still on the rise. In fact, March data shows an increase in the average sales price of 16% compared to a year ago, which is higher than the moderate appreciate expected in 2023. During the fast rise of recent years, we've seen the annual appreciation gain occur largely during the spring market, which has given a softening feel for the 2nd half of the year, even though real prices still increase, only more modestly than the hot spring market.
An important indicator I look at in the monthly reports is the percentage of list price received, which reveals whether buyers are paying a premium or getting a discount. On average, buyers have been getting a slight discount in the last year, paying 1% less than the original list price. Several of my recent sales have been for asking price or higher, with multiple offers still very common. Buyers should be prepared to pay the asking price or higher, as inventory remains low in Northfield and demand is still high.
Local Market Update Report: