Everyone is worried about rising rates, and their impact on the future of the market. The combination of higher rates AND higher prices is dramatic when compared to just a year ago.

Here is a comparison between the NSDCC closed sales between Feb. 1st and March 29th:

Median List Price
Median Sales Price
30-Yr Fixed Rate
Monthly Pmt on 80% of MSP

Let’s set aside that the 2022 median sales price is $250,000 higher than the median list price.

The monthly payment is 72% higher than last year!

It means that the market will be increasingly determined by the affluent. Those buyers who are payment sensitive can stay in the game by opting for an adjustable-rate mortgage and start at 2.375% for ten years, or wait it out – which will be a long time, and maybe forever.

What could slow/stop the market is a change of psychology in the affluent buyers.

They can use a bigger down payment or pay all-cash to offset higher prices and rates, unless they decide to wait-and-see themselves.  But if they don’t own a house here yet, their desire to move here will be the determining factor.

The market will be made by the affluent out-of-towners!

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