DELAWARE/MARYLAND- The advantage is in the hands of sellers in Southern Delaware and Maryland.
According to the Delaware Association of Realtors, average prices of homes in February were up about twelve percent compared to last year. Active inventory went down about twelve percent.
In Maryland, the association of realtors says the average price of homes was up just under nine percent with active inventory down about 41 percent.
CEO of the Maryland & Delaware Group of Long & Foster Brandon Brittingham says interest rates are on the rise making it difficult for buyers to get the homes they want.
"When interest rates do move that affects a buyer’s ability from a standpoint that it is going to cost them more to borrow the money," Brittingham said. "So, a lot of people who may have waited last year because the real estate market is high, and they waited until this year it’s a substantial loss increase."
Brittingham also says that rates are relatively low compared to previous years but the expected rise is coming from the federal government.
"The Fed has already come out and indicated that they are going to continue to raise rates due to inflation this year so we know for a fact this time next year based on the guidance from the Fed, Brittingham said. "They are going to be up even more than what they are now."
Buyers should expect interest rates to go up over the next few months and as long as inventory remains low, the market will stay in the hands of the sellers.