Quincy home sales drop as interest rates rise

WGEM News at Ten
Published: Jun. 21, 2022 at 10:23 PM CDT
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QUINCY (WGEM) - New numbers from the Quincy Association of Realtors show a more than ten percent drop in the number of homes sold in the first quarter of 2022, compared to one year ago.

Quincy Realtor Sherry Hills said rising mortgage rates are starting to impact the housing market and make it difficult to buy homes.

She is concerned that in another 6 months rates could makes even more homes unaffordable for some buyers.

“If you are going to buy a house, do it now. Lock in your interest rate you know. And the price of homes are going up. I mean if you look at our numbers from even 2 months ago, the average sale price has gone up quite a bit,” said Hills.

Mercantile Bank Vice President of Mortgage Lending, Billie Grawe, said the rate increases have made it difficult for people to get homes they may have been able to afford just a few months ago.

But, she said there are things that people can to improve their situations.

“Any derogatory credit getting those paid off, paid down,” said Grawe. “If any of their credit cards are maxed we want to make sure that they take those balances down as well. It’s more just about counseling so if they don’t qualify today that within the next 6 to 12 months they can come back and see us and get a mortgage loan.”

For those who can get a mortgage -- Hills said they’re locking in rates now...and are ready to buy before the next rate hike.

“Be ready to sell. Because probably if it’s price right, if it’s marketed right, if it’s in good condition the house will sell within the first 24 to 28 hours,” said Hills.

Currently, a 30-year fixed mortgage is around 6-and-a-half percent, but just a few months ago, it was in the low 3s.

Some things you can do to prepare to buy a home are to go in with a strong offer, have good credit, be preapproved, have an escalation cause, and work with a realtor.

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