Market of the Moment 2/18/2022:

[Alan Walker]

Just when you think we can’t go lower……. SFRs in Salt Lake County under 700k is at 124 homes. Even with interest rates bumping up, I’m pretty sure there are more than 124 buyers in the entire county that want to buy a home. The Fed announced 4-5 price hikes this year and it is already having an effect on primary home mortgage rates. We are soon approaching <gay gasp> 4%!

The market dynamics right now aren’t being driven by interest rates, its straight up supply and demand.

Why do you think people aren’t selling?

[Erik Checkur]

From the conversations I have each day, I hear people say "I'd be interested in selling, but then where would I go?" So I think there's a lot of hesitation because of the uncertain times. It almost feels like everyone has be be in a community of hermit crabs...Those who want to move all get out of their shells and move to another shell at once, in rotation. Coming into the spring market, my focus is on holding some events and a seminar with a mortgage lender and a few other industry professionals to educate the public on products and strategies that I'm sure the majority of the public don't know exist. Many mortgage companies are trying new programs to incentivize and protect their clients trying to sell and buy, trying get get the sellers market kick started. 

I'm also finding in some areas, especially those with an older population of people who may be more uncertain and conservative with their finances, homeowners may not understand the leverage they can use since they aren't sure of the equity they have in their house. I think there simply needs to be more communication and education instead of listening to the panic.