While interest rates continue to rise, today’s market is reflecting normal pre-pandemic levels.
With the housing prices increasing by 6-7% and the monthly supply growing 15-20%, we aren’t surprised as the bidding wars begin to slow down- but they are not coming to an abrupt hault as people believe. We are seeing that homes are beginning to sell at asking price or below market due to the rise in interest rates and inventory levels continuing to increase in various regions.
This is very encouraging for buyers who are are looking to enter homeownership with less competition and realistic to their buying power financially.
For Sellers, this is still a very positive time to sell your home had your home sale been contingent on upsizing or downsizing, now that more inventory is coming available. There is a buyer for every home and your home could be meeting the very needs of a buyer right now, the key in the market is entering at the right price to eliminate long listing periods and compromising more than before in counter offers.
How you can further understand what is happening in your local market is by:
- Being aware of homes for sale in your neighborhood
- Monitoring how long homes are sitting active
- And how much they finally sell for compared to their “just listed” price
- Scheduling an appointment with me to discuss your particular questions or concerns regarding the market conditions
There are several other significant variables that determine the value of your home. The best opinion is to always seek a professional when thinking about listing your home in any market. Buyers are seeing more opportunities to purchase homes that meet their criteria rather than writing offers on homes with the hopes of acceptance, sometimes regardless of criteria.
We are seeing that there are more homes on the market than months before and it is important to note that it has less to do with more homes being listed as it is less buyers qualifying or being able to afford the mortgage rates. There are still sellers that will take the opportunity to capitalize on a shifting market and it is still possible for buyers to find the homes that meets their needs while remaining affordable. Another consideration to all parties interested in real estate that although some data we are seeing is abnormal, it is at least normal activity to slow in the late summers as families prepare for a new school year and as the holidays quickly approach thereafter.
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