Sales are lower than in 2021, but when compared to a normal year (2019), they’re still up
Prices are steadily increasing as inventory remains historically low
Interest rates have risen to 6.75% and we don’t expect them to drop anytime soon
Those with low interest rates are staying put so there are fewer homes available
Sellers: Less inventory than in normal times, so still a great time to sell
Buyers: It’s a better time to buy as the market continues to balance
As we enter the fall selling season, our market continues to balance. While headlines may be focused on how single-family home sales are down compared to the unprecedented sales numbers of 2021, it’s important to recognize that sales are still up significantly when compared to a normal year (2019). Impressively, this is happening even with much lower inventory levels: 29,740 (August 2019) vs. 22,096 (August 2022).
It’s a better time to buy than it has been in recent years as there are fewer bidding wars and you’re less likely to have to pay over list price. Sellers are more realistic now too, so buyers have a better ability to negotiate repairs and are dealing with more sensible close dates and leaseback terms. Although sellers need to have a more realistic approach to pricing their home, conditions, and repairs, it’s still a great time to sell as there’s less inventory than in normal times.
Rising interest rates have scared off some potential buyers, although they should remember to “date the rate, and marry the house.” Since we expect home prices to continue to rise too, you won’t gain anything by waiting for interest rates to drop. It’s better to buy the home you want now and refinance your interest rate later.