After a review of the first quarter sales results, it appears we may be headed towards the perfect storm. For example this year, 121 homes sold in our county through our local Multiple Listing service, compared to 168 that sold last year for the same period. First explanation is that existing inventory is at an all time low of only 119 residential home available for sale. The second reason is that interest rates are climbing higher and are getting ever so close to 5%. This is leaving more potential buyers on the sidelines. Home prices are continuing to go higher with the current median price here in Columbia County reaching $437,500. In order to slow down the rate of inflation the Federal Government will resort to continuing to raise interest rates & what generally follows is that demand will decrease, and that could lead to a cooling down of our market. That’s why watching trends is so important.
