Flagler & Volusia Housing: A Balanced Market as Rates Hit 7.40%

Thanks for checking out this month's Market Update & More, and be sure to stick around for my Hot Take & Cool Tip for the month.

In mid-October, mortgage rates hit 7.4%. That's the highest in almost 3 years. This week they eased to 7.18%, the third drop in a row. And nationally, August and September were the 2 slowest months for home sales this year.

I'm Dave Petkovsek with CENTURY 21 Realty Exchange. Now here's Flagler and Volusia.

Homes for sale are down 11% from last October. The median price rose to $356,000, up 2% from a year ago, and sellers got 98% of asking.

The catch? Closings fell 14% from last October, to 801. Pending sales are down too, so supply climbed to 6 months, up from 5 and a half in September, and homes took 87 days to sell, about the same as a year ago.

So why are prices up while sales slow? There's still 11% less to choose from, right? Sellers with a good home aren't giving it away, but at 7%, fewer buyers qualify. And a lot of the new construction never hits our MLS, with builders buying rates down to compete.

Here's my Hot Take. Six months of supply is a balanced market. Not a crash, not a buyer's market. Balanced. Buyers have choices again, and they're still paying 98% of the asking for homes priced right. Stop telling clients to wait. Tell them the truth is, this is a fair market for both sides.

Cool Tip. Rates have come down 3 weeks in a row. Call every buyer who stepped back when rates spiked in October. Run their numbers again at today's rate. Some of them can buy again.

That's your update. See you next month.