Rising Mortgage Rates And Decreasing Residential Units Slow Putnam Housing Sales

Local realtors said that mortgage rates are up and residential housing supply is down, creating a mild decrease in sales.

Skender-Newton Owner Broker Heather Skender-Newton said homeowners with low-interest loans are hesitant to look at housing options at this time. Skender-Newton said buyers in the current market are generally families with a new baby or people moving for a new job or otherwise making a necessary change in home size or location.

“We see hesitation in buyers and their affordability has moved down slightly based on the higher rates and their payments being higher,” Skender-Newton said. “But with some education and navigating through these new rates that we’re dealing with, buyers can easily see that now is a great time to purchase.”

Skender-Newton said housing supply was already low in the Putnam County area, and with the upswing in rates combined with homeowners trying to hold on to their mortgage’s current low rates, that supply has dwindled again.

Real Estate Collective Broker Owner Amber Flynn-Jared said the local housing market has about a two month inventory supply, which means it is unlikely that prices will be coming down.  However, Flynn-Jared said the current correction and market stabilization is a good thing.

“You know 15, 20, 30% growth year over year like we were experiencing,” Flynn-Jared said.  “That’s just not healthy for a vibrant economy. And so we like to see the stabilization and we just want that to continue to grow at a slow and healthy rate.”

Flynn-Jared said contrary to other areas, her buyers are not experiencing a difficulty in obtaining mortgages.  She said lenders are becoming more creative with financing and helping buyers offset the higher rates.

“We’re seeing 2-1 buydowns,” Flynn-Jared said. “We’re seeing seller credits and concessions being used again which had kind of become a thing of the past during the post COVID surge.”

Flynn- Jared said lenders are definitely having to think outside the box to get payments down through other means.

Skender-Newton said year over year thorugh the end of s of June there has been a 5% decrease in residential pricing in the Upper Cumberland. She said when you consider the average home prices is $310,000, that 5% is a meaningful savings.

“I’d much rather have a more attractive price with a higher rate that I can correct at any time,” Skender-Newton said. “You’re not going to be able to change your purchase price.”

Flynn-Jared said people need to look at their home buying journey as a very individual process. She said your decisions should be about your family and not about what everyone else is doing.

“There is a time and place for renting, there is a time and place to buy and hold,” Flynn-Jared said. “And then there is a time and place when you may need to move up in house or even scale down and take advantage of the equity you have in your property. But just make sure you’re making an informed decision and doing what’s best for you and your family.”