Open Houses swamped today
87 degrees? August? Expectations were for low attendance today at Open Houses – but instead they were swamped, according to agents I have spoken to who held Open Houses in Marblehead, Swampscott and Peabody.
Which makes me wonder why? Mortgage rates remain below 3.5%, but there has been little change over the last 2-3 weeks. What we did see on Friday, however, was a second consecutive strong jobs report ( the US economy added 255,000 jobs in July, after an upwardly-revised 292,000 in June), making it seem more likely that the May surprise – up only 24,000 jobs – was an aberration, in part because of the Verizon strike.
If companies are hiring that suggests confidence in the economy. Following Friday’s announcement many commentators suggested that the Federal Reserve may be more inclined to raise interest rates in the coming months.While the Federal Reserve does not directly influence mortgage rates (read What the Federal Reserve’s rate increase means for mortgage rates), the talk of higher interest rates often spurs home-buying activity.
There is one other factor. I have been concerned that the November elections might, at some point, start to cause both businesses and consumers to be more cautious, especially with polls showing the possibility of a major shock to the ecosystem. It is only one week, but polls widely suggest that shock is much less likely now, perhaps making it easier for businesses and consumers to make significant capital investment decisions.
Whatever the cause, there is no doubt that we saw a large number of actively-seeking home buyers today.
If you are considering selling your home please contact me on 617.834.8205 or Andrew.Oliver@SothebysRealty.com for a free market analysis and explanation of the outstanding marketing program I offer.
If you are looking to buy, I will contact you immediately when a house that meets your needs is available. In this market you need to have somebody looking after your interests.
Andrew Oliver is a Realtor with Harborside Sotheby’s International Realty. Each Office Is Independently Owned and Operated