It has been a wild ride over the last couple of years in real estate with buyer demand being
unusually hot. In early 2022 we witnessed the housing frenzy give way to tough budget realities
as rates rose and home prices continued to surge. This caused many buyers to put their plans
on hold due to increasing costs. Additionally, news that a recession may be coming and
volatility in the financial markets has left people nervous and uncertain.
Fortunately, a recent Zillow survey showed that 60% of housing experts felt that we are not in a
housing bubble, citing strong fundamentals such as the scarce inventory and shifting housing
preference as the reason for the home price appreciation. That said, locally we are seeing a
definite pullback and a cooling market with houses staying on the market longer and price
reductions becoming more commonplace. To me it seemed to happen almost overnight.
Rates have come down a bit since the frenzy of mid-June but concerns about persistent
inflation will continue to have a strong influence on mortgage rates until this is ample evidence
that price growth is easing. The good news is higher mortgage costs should usher in some
much-needed rebalancing of the market.
In conclusion, If you are a buyer, there is hope that you will finally be able to buy that home! If
you are a seller. you may need to come to terms with this changing market and shift your
strategy and expectations to align with today’s reality. Below is the 2nd Quarter Market report for your review.
I’m happy to help you navigate the shifting winds if you’re considering putting up sails. Have a