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May Market Update: "Less buyers going under contract at higher interest rates."

The market has certainly taken a turn since a 24 month bull run. Everyone has asked me, “How’s the market doing” and while the last 2 years the answer was very easy, “The Market is Nuts! 10 offers on every house… etc” — Things have changed a bit this year.

While the Days on Market and Months Supply of Inventory is about the same as last year, the change to our market is reflected in the pricing & performance.

Our average home prices (as I said last month) have seen all time highs. This month the AVG SOLD is $287,000 and while that’s less than it was in March, it’s still 20% HIGHER than it was last April. Matches the median increase of 20% also.

475 homes went under contract, which is the highest since last August 2021, but is still 11% lower than the 535 homes last April.

May 1st to May 8th there was a 24% drop in activity compared to the first 8 days of April and down 29% compared to last May. No doubt this has to do with less buyers going under contract at the higher interest rates.

Now we know the Fed’s goal in higher rates is to slow inflation. I mean we cannot sustain 20% increases in home values every year. Since my team and I are on the front lines, I thought it would benefit you to know, things have started slowing down in Lubbock County.

Currently the average active home for sale is $383,000 and the average price per square foot is $125. Folks, if were looking for the top of the market, you may have just found it.

I will also say 630 homes hit the market in April. The most since June of 2021 so most of you have figured this out. But if you’re still thinking about selling your place, give me a call. We’d be honored to serve you.



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