Here’s what you need to know about our shifting housing market.
“What’s happening in our real estate market?” I’m asked this question frequently by friends and clients, so today I want to talk about our latest market trends.
Right now, we’re starting to see a slow shift occur in our market, and it’s partly due to our rising interest rates. In case you don’t know, rates have recently increased from the high 3% range to around 6%. This is the biggest change we’ve seen in 20 years, and it happened quickly.
As a result, many buyers can’t afford as many homes as they could just a short while ago. If a buyer could purchase a $1 million home at 3.5% before, they can now only afford an $850,000 property. This is causing many buyers to drop out of the market, especially those with lower down payments.
“Buyers with lower down payments are struggling.”
Meanwhile, inventory is still very low. Many properties are still receiving multiple offers above the list price. Some, however, are sitting on the market for 14 days, which would have been unheard of six months ago.
If you’re thinking of selling a home soon, I recommend you move sooner rather than later. Interest rates are expected to increase throughout 2022, so now might be the best time to get a great deal for a while.
If you have questions about today’s topic or anything else, please call or email me. I am always willing to help!