Here we are, well past the mid-way point of 2022, and finally it seems the red hot real estate market is not feeling so red hot. In our last article, we played out how rising interest rates could affect Buyer affordability. Well that was in March, and rates had gone from 3 to 4%. At the time it seemed drastic, and a Buyer’s monthly cost increased by a whopping $300/month. We posed the following questions… how long can prices continue to rise? Will they hold? Will they soften?

Flash forward a few months later; rates are not at 4% they’re at 6%. The affordability conversation has now turned into a qualification conversation. Many Buyer’s literally can no longer afford to purchase, and the affect… a shift.

Although this drastic change can look very alarming, the reality is this…

The market is simply back to normal. Sellers are getting fair prices vs. obscene prices, homes are having to be shown for more than a day or a weekend, and instead of dozens and dozens of offers, a Seller may have to decide between a few, or maybe even accept the one offer they receive.

The goods news is the market doesn’t seem to be decreasing as of yet, simply leveling. And a balanced market is actually a healthy market.

As always, never hesitate to call us for a market evaluation more specific to your home.

Give us a call/send us a text at (626) 335-6000.

With over 35 years in the real estate industry, we can help you navigate the changing market.