Like a driver lightly tapping the brakes on a car, we are starting to see signs of a slowdown in the real estate market. The overheated frenzy of home buying is not over, only becoming less crazy.
Homes on the market are selling in a few days now instead of a few hours. We are starting to see sellers reducing their asking price in order to get their home sold.
What is causing this change? There are several processes at work here. Inventory of homes for sale has been extremely tight for several years now. Slowly, more homes are coming onto the market and staying there longer, meaning more available inventory for buyers to choose from. Second, interest rates have been rising and will continue to do so for the remainder of this year at least. This is causing some buyers to back out of the buyer pool. And third, home prices have sky-rocketed over the past several years and has priced many potential buyers out of the market.
What to do? The market always finds ways to correct itself if you give it enough time. Rates will eventually come back down. Inventory will eventually catch up. In the meantime, buyers will still be able to find a home with enough searching. Sellers will still be able to sell, but at more realistic prices.