A Lull
In my market, we have slowed down a bit, but that was/is normal for this time of year. In a pre-covid world, the BC era if you will, May to June was a slow time. I typically did vacations here since people were typically busy with graduations, the end of the school year, summer vacations, etc. This was a break in the year, and you take the breaks you can. Since covid, or AC, everything was in an uproar and there were no breaks unless we just stopped selling homes. There are a lot of people who just started in real estate in the last two years that are panicking right now. Then there are people who have been doing this for five-plus years (I’m at eight-plus myself) that are like “We’re starting to get back to normal! We can finally breathe.”
Our real estate market is hopefully starting to level out a bit now. Not to say that demand is lower, because it is not. The biggest recent change is the interest rates, which means that the same home now costs over $400 more a month since rates went from 3% to 5.5%. What this means, is that the homes that were grossly over-priced and now starting to come down. The homes that were under $375K (the average home price in America) are probably selling the same as they were before since those homes are still magical unicorns.
However, I feel this is a lull at best for my market. We will start to pick up again as we get closer to the end of June and into July and as the pricing levels off. There is still a lot of demand for this area and a shortage of houses. Not to mention the many out-of-state buyers that keep moving here for the weather, I am assuming. Whether that will be to the level of insanity we had last year or to the more “normal” spike of the BC era is unknown. But, I am enjoying the lull while I can.
Again, I can only speak for my market and, even then, it’s speculation. At the end of the day, it’s my opinion on what’s going on. I could be completely right or I can be completely wrong. Somewhere in between is also a possibility. Only time will tell really.
How’s your market looking? Same kinda thing?
Feature Photo by Mark Harpur on Unsplash
Where I live, there seem to be more houses available now than there were a few months ago. And checking the listings, it looks like the prices on many of these homes have been reduced by $25-$50K. Still overpriced, but yeah, the interest rates have definitely had an impact.
Yeah. The crazy thing is, even with a 50K decrease, the home is still more expensive than it was in February due to the rates. 🙁
I live in Toronto, Canada and the same thing is happening here. Prices are coming down fast and demand is decreasing. Just look at some of Toronto’s hottest neighbourhoods https://home.ca/toronto-real-estate/neighbourhoods where a few months ago houses were selling for a few hundred thousand over asking and in less than 10 days. Now things are changing fast.
Interesting to see it happening in Canada too. What are the rates like there?
Long living the peace
Yeah. It did NOT last. 😂