Increased interest rates affecting housing market after decrease in sales

SOUTHERN OREGON, Ore. – The increase of interest rates this month is expected to affect the housing market.

The number of home listings are up but home sales have dropped compared to last year.

According to the Rogue Valley Association of Realtor’s, the number of home listings is up 60 percent, compared to this time last year in Jackson County.

But home sales have dropped 24% this summer compared to 2021.

The federal reserve announced last week, that interest rates will go up by another three-quarters of a percentage point.

Despite increases in interest rates and fewer homes selling, one local realtor said, some home prices are still going up.

“In spite of the increase in interest rates, the increase in inventory, we’re still seeing some home prices increase,” a broker with John L. Scott reality Scott Lewis said. “I think the quarter to quarter median was still up 11.4% even though there were fewer homes that are selling.”

Lewis said it’s difficult to predict what the new rates will do to the market.

However, he expects the current trend to continue into the fall.