Two big things affect home prices as our housing market is correcting.
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Home prices may fall, but how much? The demand for housing in our area is still very high, so don’t worry about that. However, prices may go down, and there are two main factors that affect that.
The first factor, and the biggest, is the interest rate. Buyers are now being approved for a lot less, so there are fewer qualified buyers in the market. This affects the inventory, which is the second factor. Since there are fewer buyers, houses are staying on the market longer, and inventory has risen.
As a result of these things, I believe that short term, prices will go down a little bit. It should just be around 5%, but adjustments will have to be made. This is all causing a slight correction in the market.
"There are fewer qualified buyers in the market today."
If you’re trying to sell a home, make sure that your price is realistic for the current market. For this, I suggest getting a Realtor to help you. Have two or three agents come out to your house and give you a comprehensive overview of the market and an accurate valuation of your home. They should also be able to give an estimate of how long it will take to sell and how much money you’ll have in your pocket at the end of the transaction.
As always, I am here for you if you have any questions, concerns, or comments. Call or email me, and I would be happy to help!
