Right now, we’re in a very stable and relatively predictable market which does leave buyers and sellers with opportunities. While there may be variations of data from city to city over all the market continued to level out in August. Seasonality will play a role in the coming months, as comparing the numbers to last year won’t paint a very clear picture of what’s to happen in the coming months, a slow season for real estate. However, as the weather cools, we could always be surprised.
Despite our year-over-year comparisons becoming easier, the market still is looking like it’s in poor shape with listing contracts down 16%, but mortgage rates are still a little above 7%. Sellers are scarce, and with many believing that we’re in a bubble and therefore prices will fall because demand is weaker is not true. We need to remember that the measure of real estate is based off supply AND demand, not just demand alone. Supply has been low for several years now. For the moment, supply is down more than demand is down, so prices are staying firm.
Without an increase in sellers, we won’t see a market where prices fall rapidly. If supply continues to grow at 6% or more for six months or more then we could get back to a balanced market, assuming demand doesn’t grow with it.
So, if you’re nervous to sell, don’t be. And if you’re ready to buy, the market is not so crazy that you can’t find a home. Remember, the interest rates may be high right now, but they don’t remain high forever. You can refinance your mortgage payment down the road and buy your dream home now.
If you want to discuss the marketing further. Give Garcia Group a call. We’d love to go over it with you! Or, if you’re looking to buy, sell or invest in real estate, we’re here to help you with any of your needs. Call us today!