For the last few years real estate professionals and the media would often describe the real estate market as “crazy”. That term doesn’t mean much. It was an unusual market in that during the pandemic people were moving. It was kind of crazy. It almost felt like a frenzy. We sold houses quickly before the sign came. Sometimes buyers did not even tour the house before making an offer.
It was good for business too at least for those who did not have to worry about catching Covid-19 or spreading it to their family.
When the interest rates started going up last year the market changed. Cash offers are more popular than ever and some home buyers are having inspections and asking for repairs.
Multiple offers are still common but in general, we are seeing a couple of offers or a few offers rather than several or many offers. It only takes one good offer to sell a house.
Here are some graphs that show some key indicators in the housing market. The numbers are for the last three years. Prices in the area are definitely plateauing.
Interest rates have caused sellers to stay put and wait for rates to go down before moving. Buyers still want to buy. Usually, new listings are up this time of year. Home prices often peak in April and May. I am going to call it and say that they have peaked for 2023.
It will be interesting to see what the fall and winter bring.