Explaining three factors that make up our crazy housing market.
What is happening in our real estate market? The truth is that our market has something resembling multiple personality disorder; it could be completely different depending on when and how you look at things. Today we’re sharing three “personalities” of our market and how they interact with each other to create one of the strangest housing landscapes we’ve ever seen:
1. Our market is still hot. If you look in certain areas, you’ll see that our market is just as hot as it was before. Some homes are still selling quickly with multiple offers over their list prices.
2. Interest rates are rising. The Federal Reserve is raising interest rates to slow down the economy and combat inflation. In theory, this should curb some of our crazy demand and level out prices.
“Our housing market isn’t going to crash.”
3. Supply is still incredibly low. Even as the Fed tries to curb demand, supply remains low. Institutional buyers and a lack of new construction created our low housing inventory, and these factors aren’t going away. Our housing market may slow down a little bit due to rising rates, but it won’t crash because supply remains low.
If you’re looking to buy or sell, what does this mean for you? First, buyers will face less competition in many areas due to rising interest rates. Now could be the time to reenter the market if you’ve been waiting for conditions to change. However, you need to act fast before interest rates rise further.
Meanwhile, it’s not too late for sellers to get fantastic deals for their homes. Some houses are still flying off the market like before, but this is becoming less common. Instead of your home selling in three days with 30 offers, it may sell in a few weeks with five.
If you have questions about this market shift or anything else, please call or email us. We are always willing to help!