What will the upcoming market shift mean for buyers and sellers? Find out today.
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We’re beginning to enter a buyer’s market, but what are the conditions that are causing this shift?
We’re seeing a softening in home prices, and the biggest indicator of a shift has been that the price perception of buyers and sellers is very far apart. In a normal year, our team may see one or two offers that sellers simply can’t come to terms with. Last year, however, we saw 26 of these offers. In every instance, the buyer and seller could not negotiate an agreeable price.
New construction homes are also having issues with price. Prices are increasing, but most of our area’s new construction is already at a luxury price point. Many of our buyers are looking in moderate or low-end price points, so some stress is being put on the high-end market.
Interest rates are at their highest level since 2011.
Resale homes are having to make more price reductions in order to get sold. Mortgage rates are increasing as well—the 30-year fixed rate is currently at 4.62%, which is about a point higher than last year. It’s now at its highest level since 2011.
All of this indicates a shift in the market is coming. We’re already seeing prices decrease in some areas, and it may soon be happening across the board. Instead of having a balanced market, buyers will have the power.
If you’re looking to sell, you should do it before the shift happens. If you’re a buyer, it’s time to do some research with your agent so you can recognize when a great deal comes along. Talk with your lender and make sure you’re pre-approved so you’re ready to act.
If you would like information about your specific neighborhood, have any questions, or need further information, feel free to reach out to us. We look forward to hearing from you soon.