The Market Sure Seems to be Shifting
So, what’s going on? Well, for starters, don’t panic. It makes sense. We’ve been in a seller’s market since about 2011. Due to more buyers than sellers, prices have been pushed up up up. In other words, the scarcity of available homes for sale has put upward pressure on prices.
I know what you are thinking. That you’ve heard this a million times. And that it sure feels a lot like the years that led up to the Great Recession.Well, this is the part where I tell you I can’t predict the future. But I can tell you that I think we are heading into a more balanced market.
Buyers Dropping Out
We are also seeing buyers drop out of the market because they look at what’s available in their price range and decide to pass. So, not only are buyers pushing back on prices, but the pool of buyers in the market is decreasing.
Rising Interest Rates
So, what I’m seeing is a shift towards a more balanced market. This shift appears to be starting at the middle to luxury price points and is slowly trickling down. There are still some micro markets that are very competitive in the lower and entry-level price points.
In the end, there is always the potential for a correction. Historically, one might argue that we are due. However, at this time, it appears that market fundamentals are healthy. The slowdown that we are all feeling is a logical response from buyers who have had enough of rising prices and interest rates.
Katie Griswold is a Realtor with Griswold Group @ Pacific Sotheby’s in San Diego, California. Working alongside her brother, John and dad, Bob, the Griswold’s serve buyers and sellers throughout greater San Diego county. To get in touch with Katie, email firstname.lastname@example.org.