As we mentioned in the last newsletter, a shift is happening in the real estate market. While we are still seeing a Seller’s market, things are beginning to cool off a bit. Inflation and rising interest rates are the main issues causing Buyers to take a break or step away from the current market.

What does the changing real estate market mean for Buyers & Sellers? 

What this means for Sellers

The days of multiple offers and over-asking sale prices may be coming to an end, but the reality is that inventory is still extremely low, giving those who still want to buy a home very few options. Prices are stabilizing but we have no reason to believe that a crash is imminent or that a significant lack of demand will force a massive decline in sale prices. Since the real estate market crashed in 2008, home prices have continued to rise while interest rates remained significantly low. This means that most homeowners have considerable equity in their homes. Even as list and sale prices level out, homeowners still stand to have significant gains in their property value.

THESE CONDITIONS MAKE IT THE PERFECT TIME TO LIST YOUR HOME!

Buyers are still seeking homes in well-maintained neighborhoods near schools, parks, shops, and restaurants. Homes that are very clean and well cared for are especially popular right now. People are comfortable updating kitchens or bathrooms if the home’s systems and the structure are in good shape. Homeowners still have a very good opportunity to get their homes sold at a great price.

What this means for Buyers

Buyers have had an exhausting few years as bidding wars became the norm. While some people will choose to step away from the home buying process as interest rates increase, those who stick with it should have an easier time getting an accepted offer. Home prices will no longer be as inflated, but don’t expect any major drops since the limited inventory will still keep prices fairly stable. With lower competition, Buyers will have less pressure to write an offer immediately, giving them more time to think about homes, do research about the property and area, and ask any questions they may have before delivering an offer. Today’s real estate market is actually quite healthy with more balanced opportunities for both Buyers and Sellers.

For a more thorough look at how higher interest rates are impacting Buyers, click here.

Whether you are looking to sell or buy, our team's experience and expertise will help you navigate the changing market. Send us a message if you have questions about how this new market affects your real estate goals.