Last week the Federal Reserve Board did not raise the Federal Funds Rate but it hinted that it will do so later this year. After the announcement, the stock market went down and the 30-year mortgage rate went up. Last month we evaluated the impact of the current 30-year mortgage rates (above 7%) on the local market (read that newsletter here). Because it takes 30-60 days to close on homes under contract, we concluded that real evidence would not be available for a couple of months.
Here is the chart from the Real Estate Information Network (REIN, our local MLS).
As you can see, while the number of active listings (available homes for sale) is lower, the number of settled (closed) sales is down more. This is causing the month’s supply of inventory to creep up to 1.68 for August 2023. It was 1.54 in July 2023 and 1.39 last August. The months’ supply of inventory is calculated by dividing the total number of homes listed for sale by the number of homes that go under contract. For example, if 100 homes are listed and 10 go under contract, that months’ supply of inventory would be 10 months. A balanced market is between 5 and 7 months. Despite the higher interest rates, and the somewhat slowing market, the number of homes on the market would need to almost double twice before we get into a balanced market.
Our title this month is also our trivia question. Of the approximately 53 million outstanding home mortgages, 32.33 million of them are under what fixed mortgage rate? Reply back to this email with your guess, and we will give you the answer next month.
If you are thinking about buying or selling, it is in your best interest to go ahead and give us a call (757-726-7653 for Lee, 757-434-9084 for Harry) or reply back to this email, and we will be happy to talk through your individual situation. We love real estate and are always happy to talk.
Don’t forget, we also manage rental properties and can help with your property management needs as well.
Click HERE for previous editions of this newsletter
2023 Virginia REALTORS® Good Neighbor Award
Cross Realty is honored to announce that Harry Lee Cross III was awarded the 2023 Good Neighbor Award this week by Virginia REALTORS®.
The Virginia REALTORS® Good Neighbor Award recognizes REALTOR® members who make a positive impact on their community and gifts the organization through which they volunteer time and talents. This annual award seeks to highlight, inspire, and perpetuate the individual contributions within the real estate industry toward improving the lives of citizens in Virginia.
What’s Happening in Suffolk
Fall Exhibit: Chesapeake Bay Watercolorists
The Suffolk Art Gallery is proud to present their Fall 2023 Exhibit, featuring work from members of the Chesapeake Bay Watercolorists, a membership-based organization that brings local artists and art…
Suffolk Peanut Fest Queen’s Banquet and Fashions
Celebrate Suffolk’s shining young stars and support local charities, at the annual Suffolk Peanut Fest Queen’s Banquet and Fashions, on Thursday, September 28, 2023, at the Hilton Garden I…
Walk To End Alzheimer’s – Suffolk 2023
At the Alzheimer’s Association Walk to End Alzheimer’s®, we’re fighting for a different future. For families facing the disease today. For more time. For treatments. This year’…
Baker Acres Farm 2023 Opening Day Celebration
Join Baker Acres Farm for its Opening Day Celebration, on Saturday, September 30, 2023, from 10am-6pm. Enjoy family fun including a corn maze with scavenger hunt, pre-picked and u-pick pumpkins, mums …
Suffolk Peanut Fest Parade
Kick off the Annual Suffolk Peanut Fest with a festive parade through downtown historic Suffolk, beginning at 10am, on Saturday, September 30, 2023. The parade stages in the Lakeside neighborhood and…
15th Annual Mutt Strut Festival
The 15th Annual Mutt Strut Festival will be held at Bennett’s Creek Park on Saturday, September 30, 2023, from 12-6pm, and will showcase exciting pet-related activities and fun for the entire fa…
SUFFOLK PEANUT FEST
Known for its fun family activities, Suffolk Peanut Fest offers concerts, amusement rides, contests and competitions, a demolition derby, peanut cup race, motorcycle rally, fireworks and much more. Combine all of these great activities with local and national entertainment and you have a weekend full of good times!
Suffolk Peanut Fest is scheduled for October 5-8, 2023.
SUFFOLK VA FARMERS’ MARKET
The Market offers an array of fresh local produce, beef, poultry, eggs, honey, baked goods, pickled vegetables, jams, plants and flowers, handmade soaps, candles, garden and farm décor, jewelry, and other artisan crafts.
