Sellers rejoice!

The short-term picture on pricing is getting more positive for sellers with each passing day.

The average $/SF for listings under contract refused to drop below $295 and is now making a challenge to break through $300 again.

The monthly average $/SF for closed listings has been on an upward trend since mid January. The trend is weak but is becoming clearer as the month progresses.

Any buyers who are waiting for prices to fall further are probably going to be disappointed. The Cromford® Market Index is now over 120 and that strongly suggests firmer pricing ahead.

However it is possible that mortgage interest rates may get worse for buyers. The average 30-year fixed rate is already over 6.75% and heading for 6.875%. Last month we saw an average rate of 6.20%, so affordability has deteriorated.

The main problem for those who are hoping for a price collapse is that supply remains stubbornly low and continues to move downwards. There is absolutely no evidence of a supply wave coming towards us. Quite the opposite in fact, as new homes will be scarcer in the coming months because of the low number of permits that have been issued over the past 6 months.