The National Association of Realtors (NAR) has come out with its annual report for home buyers and sellers.
The NAR holds an annual survey of home buyers and sellers. That report shows transactions that took place between July 2022 and June 2023.
According to the association, this allows industry professionals to gain insight into detailed behavioral patterns in the housing market.
“People are buying homes with more money down, they’re paying higher prices for them and actually, cash buyers comprised, in this report, 20% of the home buyers,” said Patrick Groner Jr.
Groner is the president of the board of directors for the Greater Erie Board of Realtors. It’s a trade association comprised of realtor members in Crawford and Erie counties.
“A lot of the reason that we saw the cash purchase for the reports period of June 2022 and June 2023 was that at that time, deposit rates were not as high as they are now, so putting that cash to use in the form of home purchase made sense,” said Groner.
Because certificates of deposit (CDs) rates have recently increased for prospective home buyers, Groner believes there will be fewer cash transactions until rates lower.
He added a lot of the trends with the NAR report coincide with trends in our local area due to macroeconomic conditions, such as high interest rates and inflation.
“Erie has always been a stable community meaning there’s not high highs or low lows, so when you go through these peaks and troughs, typically, Erie is affected less by them because of the stability of our market. I think that’s the case here too,” Groner said
According to Groner, the median home sale price in the region is around $180,000, and he doesn’t anticipate prices going down anytime soon.