Is the real estate market starting to cool?
The short answer appears to be “yes”.
Three factors are applying downward pressure on the real estate market: the jump in interest rates, ongoing shortages and the affordability problem.
Many first time home buyers are re-signing apartment leases as competition and higher rates price them out of the market.
Some sellers are deciding to stay put for now since a new home will mean locking in at a higher interest rate for a long time.
But I’m not seeing these factors making homes any harder to sell.
The rough approximation is that there are 20 buyers for every home listed. If you take out some of those buyers, you still have a strong sellers market!
It will probably be a long time before we see the real estate market return to a balance of buyers and sellers.
Have a great week!
David Baker, Broker/Owner
Baker Realty Group