As we are nearing the end of 2022 (there are only 53 days left this year!), we have seen a shift in the real estate market from a complete seller’s market earlier this year to a more balanced market in recent weeks. Since March 2022, the Feds have been battling inflation with drastic three-quarter point interest rate hike increases on the prime rate. Over the course of these rate hikes, in turn, mortgage lending companies have also raised their interest rate to their consumer aka home buyers. For a more detailed explanation, this article provides an easy to understand overview!
In the third quarter of 2022, sellers were hoping to capitalize on the buying phenomenon that occurred earlier in 2022, but as home buyers’ interest rates rose, so did their monthly payment and sellers needed to adjust their strategy. Buyers were no longer willing to pay above asking prices, waive all inspections, and/or waive appraisals (in most cases) so we saw a shift occur. We are now able to negotiate offers on behalf of our buyers and we are still selling our sellers’ homes for more than what comparable homes were selling for in 2020! This is a win-win for buyers and sellers because even though interest rates are higher, home prices aren’t as high and there will be a point in the near future when mortgage interest rates dip and buyers will be able to refinance!
While the media is dramatizing the housing market with a slightly pessimistic outlook, as industry experts in our local area we are experiencing plenty of buyers out there and there are sellers desiring to sell. We have entered a more healthy and balanced real estate market which is now beneficial to both buyers and sellers so long as a strong strategy is employed!
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