Decreasing buyer demand in our market is having ripple effects.
What’s going on in the market? We get this question almost daily because when you look on sites like Zillow, you’ll see that people keep reducing the prices of properties. Today we’ll go over exactly what’s happening in our market.
About five weeks ago, we felt a big shift, and demand dropped. We had properties hit the market only for demand to drop quickly. As the highest offer pulled out, we decreased the price by $50,000 to $150,000 on a few properties. This equates to about a 10% drop in value for about 80% of properties. However, about 20% of the properties that hit the market still ended up selling for over asking price; the high prices tended to be for the “character” houses.
With rates projected to rise, there will likely be another little dip, but it’s impossible to say when. The government is trying to get a handle on inflation, and interest rates are the best tool to do so. However, that’s going to make affordability go down. Properties will continue to get fewer offers, so price adjustments will be needed..
If you have any questions, don’t hesitate to reach out to us. We look forward to hearing from you.