Even with interest rates on the rise, the housing market is still seeing high demand from buyers and a limited supply of homes for sale. This is causing home prices to go up and multiple offers on available properties to become more frequent. Let’s explore the current market situation and discuss why homeowners may be holding back from selling their homes right now.
When comparing the number of homes sold this year to last year in both York County and the entire state of Maine, we see a noticeable drop. In York County, the number of homes sold fell by 40% in January, 20.6% in February, and 34% in March. For the whole state of Maine, the decline was 31.4% in January, 17.5% in February, and 23.5% in March.
Reasons for Low Housing Supply
There are a few reasons why homeowners might be hesitant to sell their properties in the current market. Some of the main factors include:
- Difficulty finding a new home to buy or rent: With fewer homes available, it can be tough for potential sellers to find the right home to purchase or rent. This uncertainty can make homeowners think twice about putting their houses up for sale, which only adds to the shortage of available homes.
- Not wanting to lose low interest rates: Many homeowners who bought their properties in recent years have locked in low mortgage interest rates. The idea of selling and buying a new home with a higher interest rate might not seem appealing, so they decide to stay where they are.
- Waiting for better weather in spring: A lot of homeowners prefer to sell their homes during the warmer months when they can show off their homes and gardens in the best light. Since spring is just getting started, some sellers might be waiting for better weather before they prepare their homes for sale.
The combination of high buyer demand and a limited supply of homes for sale is pushing home prices higher and making it more common for properties to receive multiple offers, even with interest rates going up. Understanding the reasons why homeowners might not want to sell right now can help both buyers and sellers navigate the ever-changing housing market. As the spring season continues and the weather gets better, we’ll have to wait and see whether more homeowners decide to list their properties and help increase the housing supply.