There are many factors that influence the real estate market here in Medford. Interest rates are higher than they were a few months ago. Today you can get a 30 year fixed rate mortgage for 4.625% if you have good credit. Another important factor is the number of homes for sale. Just like you learned in your Economics 101 class, the price of a product is a reflection of its supply versus the demand for the product. Today I thought we’d look at what’s been going on with the supply of houses over the last two years. We’re still in a cycle of high demand for homes in Medford.
In August of 2011 there were 128 single family homes for sale – that’s 46% more houses than were for sale in August of 2013. What will happen if/when interest rates rise or when more people decide it’s the right time to sell? Stay tuned!