What to expect for the Summer market…
We are now officially in a “mixed bag” market! The houses that are in the perfect location, and condition, and at a good price are still getting top dollar and multiple offers. The ones that lack at least one of those attributes are sitting on the market for a little while, and if they sit long enough, we are seeing price reductions. Using comparable properties to determine what price to list at or buy at is getting harder. Unfortunately, no one can predict what will happen in the next month, season, or year. Real Estate just got more interesting, and difficult, for all parties. We’ve never been in this low inventory, high demand, high income, high inflation, high rates market.
I have good news to share…
- Increasing Inventory, although minimal, and less competition is coming and buyers will finally be able to shop around to find exactly what they want and will have more options to look at and consider.
- Bidding wars are slowing down and modest offers are actually being accepted. You can finally get a house for the asking price or (gasp!) even under the asking price!
- Seller concessions will return and AS-IS offers and Appraisal Gaps will not be required with every offer. YAY!! (If you need clarification, reach out and I’m happy to explain)
And I have not-so-good news…
- Inflation and supply chain issues have increased construction costs and that will remain for the near future. We won’t see much-increased inventory or cost relief from new construction for a while. Inventory won’t get high enough to balance the market fully and rentals will remain expensive. It will still be a Seller’s market for quite a while. We still have high demand and low inventory.
- Interest rates are going to continue to increase, potentially on a daily basis. Monthly payments will increase for home purchases and for rental properties. Inflation will need to go down to get rates to retreat. Not sure rents will ever go lower.
- Prices are most likely going to flatten overall. Buyers can’t expect a screaming deal quite yet, and sellers can’t expect a huge equity gain anymore, therefore no one will be happy for a while. 😉
For an in-depth look, this is a great article that explains the current housing market conditions.