For 2 or 3 years the real estate market has been a frustrating one of buyers and their agents alike. Too few homes being chased by too many buyers. Perhaps the balance in the market is about to change.
Rising interest rates are likely to force some potential buyers out of the market, with them not being able to afford the mortgages required to purchase a home. With few Byers chasing the inventory on the market, homes will stay on the market longer. This may force sellers to rethink their pricing strategies. We are already seeing this in increased price reductions.
rWith fewer buyers looking and homes staying on the market longer, total home inventory will begin to rise. Buyers will have more choices and the pressure to raise home prices will lessen.
My guess is that we will see better hope buying conditions towards the end of the year, but it will come at a cost of higher interest rates.