So where does the market go from here?
We have a market that has slowed, and prices are coming down. The rise in rates is putting downward pressure on price. We are seeing more weekly price adjustments (15-20 per week - we were seeing 2-5 at the beginning of the year), and days on market for the Active inventory are increasing.
For today's sellers being priced properly is increasingly important as a new listing - if priced too high the property will sit. Buyers are being more deliberate and thoughtful in their purchases. They once again have some negotiating power. They can afford to be patient. Location, condition, and opportunity are important considerations again. Properties priced correctly can sell quickly (one to three weeks) and sometimes do, but it's not uncommon to sell with only one offer.
Inventory is a challenge -
Inventory has increased from the beginning of the year but is still well below normal pre-pandemic levels. This heightened absence of inventory is a newer market phenomenon and gauged against demand is responsible for current prices remaining elevated.
If interest rates hold above 6% or continue their upward trajectory, it will continue to dampen activity. There is still interest for new inventory. There are buyers, but rates have adversely impacted affordability.
A market correction has begun - time will reveal exactly the extent and meaning of what that correction is.