Every month we take a look at the data for the neighborhoods we serve and provide you with some summaries. You'll see that the month-over-month and year-over-year trends vary by neighborhood. So I like to augment the stats with a summary of what we are seeing first hand and hearing from our colleagues.
Without a doubt, buyer demand is down as a result of the significant increase in interest rates. For buyers using financing, their buying power has been drastically reduced from where it was just a few months ago. That has led many to abandon the search or adjust their expectations. As a result, we are seeing a lot less competition for buyers. At the same time, we have a pool of buyers that want and / or need to get into a home and are motivated to do it before rates rise even further. And in our market, we also have a lot of cash buyers or high net worth buyers who are less impacted by or sensitive to the rise in rates.
On the supply side, inventory is ticking up, but it is largely driven by houses taking a bit longer to sell vs. lots of new sellers putting their homes on the market. The demand for good houses, in good condition, in good neighborhoods is still there. If those properties are priced well (at or even below market value) they are still selling quickly, and sometimes still well over asking.
All in all, the market is moving and deals are getting done, but at a slower, more measured pace than we have seen the last two years. Many buyers are expecting or at least hoping for a deal, but many would-be sellers are locked in at very low rates and not feeling the need to sell at a "discount" keeping inventory low and prices fairly stable.
As always, every neighborhood, house, and client is unique. So if you have any specific questions or scenarios you'd like to discuss, let's chat over coffee on me!
