Welp. Here we are again. Interest rates have continued to rise (now at a 20 year high at 7.15% average interest rates), and it’s cooling the real estate market significantly. How high will these go? We’re already facing a recession – the question is, how bad will it be? Some argue the Federal Reserve (the ones who mainly set a primary borrowing rate which drives most other interest rates, like mortgages) will have to stop raising rates or else we risk a depression. On the other hand, inflation seems to continue to be much higher than what they want – and they have committed to doing whatever it takes to reduce inflation, even if it means killing the economy.
I’m hopeful that inflation will come down, especially as pretty much every sector in the economy has slowed – especially real estate. It may have already come down – many of the inflation indicators are lagging, so we can’t know for sometimes quarters after it has.
Enough of me pontificating. Onto the news.
Mortgage demand drops to a 25-year low, as interest rates climb (CNBC)
The market hotness index (realtor.com) is showing weakness in those real estate in the southeast and Texas – those places that have been overheated in the past couple years. The northeast and New York state are showing some good resilience. I’m definitely seeing weakness in people buying land in New York state, though the bottom hasn’t fallen out of the market completely.
Here’s a breakdown of some markets in New York state.
Way to go Rochester – tied for #1 spot with Manchester, NH.
Syracuse remains a steady “warm”, dropping from hot in 2019 and 2020.
Albany has been firmly in the cool range for the past few years, but had a nice bump over the past couple months.
New York State’s Suffolk County still reeling from ransomware attack in early September that has almost ground real estate closings to a halt (CBS News) – the cyberattack has made it much more difficult to conduct title searches, get deeds recorded, etc – and had brought the county to a complete half for several weeks. They’re slowly recovering, but it’s still a complete nightmare scenario.
Another property deed scam in the news… just a reminder to stay vigilant. You can’t prevent this from happening, but you can sign up to get alerted if any deeds get recorded in your name. Here’s the recent post where we discussed how to protect against this land scam.
Chinese Investors Sell Off Nearly $24B In U.S. Real Estate As Values Of Trophy Properties Fall (BisNow) – this doesn’t look pretty.
About Haystack Land Company
Haystack Land Company purchases vacant and undeveloped land for cash from property owners nationwide. We provide cash offers with no commissions or fees on our side, and we manage the process from evaluation through closing. Every closing is handled through an independent title company or licensed attorney, protecting both parties and ensuring your funds are secure. Founded in 2020, we have acquired thousands of acres through straightforward, transparent transactions.
If you own land and you’re interested in selling, please get in touch with us.
