Luxury Demand Heading Towards the Holiday Market
In the past two weeks, demand for homes above $1.25 million decreased from 325 to 299 pending sales, down 8%. Luxury is already transitioning into the Holiday Market. The luxury home inventory decreased from 1,712 homes to 1,672, a 2% drop in the past two-weeks. Expect both the inventory and demand to drop through the end of the year. The expected market time for all homes priced above $1.25 million increased from 158 days to 168.
For homes priced between $1.25 million and $1.5 million, the expected market time increased from 100 to 112 days. For homes priced between $1.5 million and $2 million, the expected market time decreased from 154 to 143 days. For homes priced between $2 million and $4 million, the expected market time increased from 164 days to 181 days. In addition, for homes priced above $4 million, the expected market time increased from 424 to 466 days. At 466 days, a seller would be looking at placing their home into escrow around the start of March 2019.
Rates Currently Trending: Neutral
Current Mortgage Rates:
Mortgage rates are trending sideways so far today. Last week the MBS market improved by +23bps. This was enough to slightly improve mortgage rates or fees. Mortgage rates remained fairly flat last week with low volatility.
Mortgage Rates Trends: