When it comes to real estate everything is local. You cannot necessarily apply what is happening nationally to what is happening in your city. Below is a summary of what is happening nationally.
Obviously everyone knows that since 2020 things were shut down and when they reopened a lot of things were selling faster and there weren't as many homes on the market. This caused bidding wars and home prices to skyrocket. There was a shortage of homes that goes back to all the foreclosures around 2008. Builders have under built since trying to avoid being caught with a home that didn't have a buyer and losing money on it. Along with all of these things we also saw supply chain issues which caused the price of lumber to go up and other issues to arise. New homes started to cost more and people were not working as much and we were seeing manufactured homes take longer and cost more to be built as well. With the new home construction costing more and there being a housing supply shortage, existing-home sales went up and prices continued to climb.
Fast forward to this summer and across the country now you are seeing interest rates rising trying to fight off the constant inflation we have been seeing. With the increased prices and the increased interest rates many were forced to reduce how much home they could afford. The inevitable reduction by sellers interested in selling their homes or needing to sell their homes has started to occur. Nationally you are now seeing sellers needing to do price reduct
ions if they are serious about selling their home or they are needing to price their home right out of the gate when they List It.
It's hard to say where the market will truly go but this is where it is currently whether you are purchasing or selling it is very important to make sure the agent you are working with sees things are changing. Thinking about the rare sellers trying to sell currently without an agent, they are doing it at a very risky time and in trying to save money are at a high risk of losing much more. This does not necessarily line up immediately with our current local market.
Check back soon as we continue to get market stats and paint a clear local picture.
By Korey Rowlson