@natale_realtors Why haven’t prices fallen yet? For our area, we are seeing the price appreciation halt, however we are not seeing rapidly decreasing prices. Why is that? For now, it’s pretty simple, inventory is still ridiculously low. There’s still enough buyers who can afford the higher interest rates and are noticing they can buy without 10 or 15 other buyers to compete with, so they are doing so. Since there’s still very little inventory, that’s insulating the prices to stay where they are currently. If inventory picks up and interest rates stay this high, you’ll start to see depreciating prices in our area over the winter months. It’s tough to see that inventory spike since many we talk to will either wait to list until interest rates go back down and then their next purchase won’t have as high of a rate or they are planning to stay in their current home and make the adjustments needed to fit their lifestyle now. The latter will obviously further limit inventory since not as many people are moving. The Fed’s plan is to correct the housing market and bring rates back down to sustainably grow it again from there. In our local market here at the Shore, quite a bit of inventory will be needed for prices to start falling. That’ll start happening if and when we start to see that inventory. If rates drop back down before, you won’t see much of a depreciation of prices. If you need help navigating the current market in your neighborhood, don’t hesitate to contact us. We’re here to help. #realestate #realtor #inventory #realestatetips #inflation #economy ♬ original sound – Natale Realtors
Why haven’t prices fallen yet?
For our area, we are seeing the price appreciation halt, however we are not seeing rapidly decreasing prices. Why is that? For now, it’s pretty simple, inventory is still ridiculously low. There’s still enough buyers who can afford the higher interest rates and are noticing they can buy without 10 or 15 other buyers to compete with, so they are doing so. Since there’s still very little inventory, that’s insulating the prices to stay where they are currently.
If inventory picks up and interest rates stay this high, you’ll start to see depreciating prices in our area over the winter months. It’s tough to see that inventory spike since many we talk to will either wait to list until interest rates go back down and then their next purchase won’t have as high of a rate or they are planning to stay in their current home and make the adjustments needed to fit their lifestyle now. The latter will obviously further limit inventory since not as many people are moving.
The Fed’s plan is to correct the housing market and bring rates back down to sustainably grow it again from there. In our local market here at the Shore, quite a bit of inventory will be needed for prices to start falling. That’ll start happening if and when we start to see that inventory. If rates drop back down before, you won’t see much of a depreciation of prices.
If you need help navigating the current market in your neighborhood, don’t hesitate to contact us. We’re here to help.