Opinion: Chris' Thoughts
Real estate professor Benjamin Keys said in Penn Today, "The housing market is in a deep freeze because interest rates have risen so quickly. The rising rates have reduced demand, as buyers are going to be facing much larger monthly payments, and it has sharply reduced inventory. Few people want to sell their homes.”
There are some metro markets, including Phoenix, Pittsburgh, and Chicago that are experience a decline in price, from 1% - 7%. These are the same markets that were appreciating in the double digits for years. Most of the economists are focused on the volume of homes being sold, which is drastically less than in the previous years.
Does the number of homes for sale matter to a home buyer or home owner? Yes. As a home buyer, there are very few homes to tour and limited choices. When you find a home you like, you must act quickly and make an aggressive offer (high price, no/less inspections, and other incentives for the seller). As a home seller, you are in control of the situation. If your home looks nice and is priced correctly, or even a little under valued, you will get multiple offers well above asking. I have seen numerous homes sell $50k-$100k over asking price with very favorable terms for the seller.
With low supply and moderate demand, we are seeing home prices increase in our area, although not at the unsustainable appreciation rates of the past two years.
Whether you're planning on buying, selling, or both, it is vital to understand the current real estate climate so you can put your best foot forward to get the best house at the best price. Let's dive into the data.