What does this real estate market shift mean for buyers and sellers?

Our phones have been ringing off the hook with calls from buyers and sellers who are concerned about our shifting real estate market. Interest rates are on the rise, which makes homes less affordable for buyers. As rates increase, some buyers will be priced out of the market altogether.

Here’s the thing nervous buyers need to understand: Yes, interest rates are rising, and that means you’ll pay more per month for a home. However, rates are still low when you look at them from a historical perspective. Plus, you’ll no longer have to pay tens of thousands of dollars over list price.

“Home prices in our current market may be decelerating, but they’re still appreciating.”

I recently read an article from Keeping Current Matters that discussed the difference between home price depreciation and deceleration, and I think it’s important for sellers to keep this distinction in mind. Depreciation occurs when home prices decrease, but deceleration is when home prices continue to appreciate—just at a slower pace. Home prices in our current market may be decelerating, but they’re still appreciating. Sellers likely won’t get tons of offers within hours of listing anymore, but there is still demand for homes.

If you put your home on the market and don’t get any offers in two weeks, don’t panic. The market is simply becoming more balanced. Just five or six years ago, as we were coming out of the 2008 housing crisis, homes sometimes took five or six months to sell.

If you have any questions about the market or are looking to buy or sell a home, please give me a call or send me an email. I’d love to help you.