-March 2,2023-
Higher mortgage rates seem to be pushing demand for new housing down, not just for existing homes. Mortgage Bankers Association says nationwide the volume of mortgage applications in late February was 44% lower than the same week one year ago, and are now sitting at a 28-year low.
A look at the City of Visalia’s building permits issued in February tells the story – builders here are not starting new projects.
In February 2022 the city permitted an impressive 82 new homes. In February 2023, single family home permits issued numbered just 8 – a 90% drop. On a year to date basis, Visalia home permits are down 65% from a year ago.
Slower demand may slow price growth going forward as more buyers are opting out of the market.
Visalia Realtors report on their MLS, that sales in January numbered 70 transactions, down from 122 a year earlier.The median sales price for an existing home in Visalia was $369,000 compared to $360,000 in January 2022.
New home construction was not the only category to slow in February. Visalia residential remodels, apartment permits and new commercial also were down.Weighted by one big industrial project last year, the total value of all permits in Visalia in 2023 on a year to date basis is down 70%. The big industrial building was Ace Hardware – just opening as of March 2 adding new 400 jobs.