Well here we are 5 months into the year and I've barely had a moment to catch my breath. The real estate market came roaring out of the gates earlier this year and has been fast and furious! Crazy bidding wars, huge home price appreciation, contracts with no inspections, the list goes on and on. As Summer is upon us, I am noticing a few subtle changes in the market.
1) Not ALL homes are selling the first weekend. Sure, most are. But there are some anomalies starting to pop up. As I check the MLS after the weekend to see what is leftover, I'm noticing good homes that didn't obtain the coveted first-weekend multiple offer scenario. This tells me buyers are starting to put on the brakes. They are tired, they are worn out from this crazy market and they are starting to say enough is enough.
2) Inventory is slowly increasing. It's not a flood, but we are starting to see inventory increasing. We are still hovering around 1 month of inventory, which is historically low, but my forecast is to see that number continue to tick up over June and July.
3) Rates are starting to give buyers sticker shock. They shot up quickly. Rates are in the 5s now, which is causing anyone sitting with a rate in the 2s from the pandemic rate drops, to question whether they really need to move. We are starting to see utilization of ARMS again (Fixed for a certain number of years 3,5,7 and then fluctuates to market rate). This is a tool I haven't used since the mid-late 2000s! But it's back and it's a great option to combat higher rate hikes.
Overall, it's still a great time to sell. Market values are at all-time highs. And for buyers, I anticipate more opportunities this Summer to write offers with much less competition than this Spring.
If you are considering buying, selling, or investing this year, I'd love to chat with you about your goals and timeline to help you map out the best strategy.