Market Update June '22

The housing market here has been absolutely wild for the last two years. Justc crazy. I’m talking multiple offers, homes selling for $100,000 over asking, buyers waiving inspections, homes pending within hours of going live, and ultimately, the gross over inflation of house prices. Whew!

Now, we’re starting to see a small semblance of a shift.

Although we’re still seeing multiple offers on some homes, it’s not nearly as treacherous as it was even a few months ago. The number of multiple offers have dwindled down from seven or eight to two or three. Buyers don’t seem to be inflating list prices as much as they were before, either. Generally speaking, buyers aren’t really clambering for houses like they have been.

In my opinion, a lot of this can be attributed to both the rise in interest rates and buyer fatigue. Oh, and the fact that prices are peaking.

Because this is the coast and we live in one of the most beautiful corners of the world, cash buyers willing to pay top dollar will always exist and beat out any competition for homes with a view or access to the beach. So, if you’re in that category, you have nothing to worry about. (Also, call me). If you’re looking for a good home with solid bones under $800,000, things are getting better for you than they were. Yes, you’ll still have to be prepared for the chance that you’ll end up competing with at least one other buyer, but if you’re able to go at least $15,000 over asking, you’re in a good position.

Sellers still have it made. As long as they’re listening to their agent when it comes to pricing, they’ll sell in no time.

If you’ve been watching the market closely, you’ve noticed more price reductions than there have been in the past. This is mostly a result of sellers thinking they can get more than their agent tells them they can, so they over-inflate. Then they have to embarrassingly lower the price when they realize the error of their ways.

Overall, the market continues to stay strong, but sellers are going to have to adjust over the next few months. Rates aren’t that high compared to where they’ve been several years ago, but they also aren’t going back down. They’ll continue to climb, which means you need to pull the trigger now if you’re wanting to maintain a decent rate.