Friday, June 17, 2022 / by Brittany Aspenson
Here’s what buyers and sellers should know about our shifting market.
“Is our market starting to cool down?” A lot of clients have been asking me this recently, and I understand their concern. A slower market could mean fewer opportunities. Did homebuyers and sellers miss the boat on a great deal? Today I want to look at the latest statistics from our market and discuss what they mean for both buyers and sellers moving forward.
Over the last few months, our number of pending sales has decreased while inventory has increased. May was a pivotal month since it was the first time sales decreased and inventory rose during a season where the opposite usually happens.
Why are sales decreasing? One explanation could be our rising interest rates. As rates increase, buyers have less purchasing power. Some buyers have had to leave the market as buying a home becomes more expensive.
So sellers have missed the boat on a great deal, right? I don’t think so. Our market is still good for sellers. One way to think about it is that our market was operating at 100 degrees Fahrenheit temperatures before. Now, things have cooled down to 90 degrees. Things are certainly still hot, and it’s not too late to get top dollar for your property.
What does this mean for you if you need to buy? There will be less competition and fewer multiple-offer situations, but it’s still a seller’s market. You may have a little more room to work with, but it still may be challenging to find a home. Meanwhile, interest rates are likely to continue rising throughout 2022 to combat rising inflation. If you want to hedge against inflation, real estate is still a great bet.
If you need to buy, sell, or both, there are still opportunities in this market. Call or email my team so that we can walk you through a strategy that makes sense for you. I look forward to hearing from you!