According to RE/MAX's newly released February report, home sales have declined in several major US cities. The Dallas area saw a nearly 14% decline in year-over-year home sales, with prices for a 30-year loan rising from 6.09% to 6.65% by the end of the month.
The Boston metro area experienced a similar decline, with home sales down by 19.1%. Prices for a 30-year loan also rose from 6.09% to 6.65%, while inventory increased by 15.6%.
Metro Detroit also saw an annual decrease of 18% in February's home sales, as potential buyers struggled to afford rising mortgage rates that went from being at around $6.09% at the start of February and ending up at $6.65%.
Despite this trend of declining home sales across these areas, barren land in cities like Lewisville, Frisco and The Colony are starting to be built-out which could create more options for future buyers.
Buyers who can afford these mortgage rates now have more power and can make offers that aren't wildly above list price due to decreased competition among buyers.
However, last month saw mortgage rates drop nearly a quarter point which may indicate some buyer activity picking back up again soon.
As always when making big purchases like homes it is important for potential buyers and sellers alike keep an eye on market trends and make informed decisions based on those trends rather than panic buying or selling without considering long-term consequences or benefits.
Note: All data mentioned is according to RE/MAX's newly released February report.