Summer 2022 has been a season of change for the U.S. real estate market. Inflation, higher interest rates, and fears of potential recession have taken a toll on buyers and sellers this summer, leading many people to stay on the sidelines to see what will happen with the market. But some experts, including NAR Chief Economist Lawrence Yun, believe the worst of inflation may be over.
Although sales prices remain up from this time last year, price growth is expected to moderate in the months ahead as the market continues to shift in a more buyer-friendly direction. Many economists of late have remarked on the market's more even-keel turn. According to Mark Fleming, chief economist at First American, What goes up, must eventually moderate...As some buyers pull back from the market due to affordability and supply constraints and as new construction adds more supply, house prices will moderate, resulting in a more balanced housing market.
For the fourth week in a row, homes are sitting on the market for a longer time than last year. Jiayi Xu - economist for Realtor.com adds As both buyers and sellers adjust to the rebalancing market, expectations shift, reducing the sense of urgency in the market and reinforcing the trend toward longer sale timelines.
Most homes are not sold instantly. Busy intersections are now adorned with weekend Open House signs. It is not uncommon to see the same home open for several weeks in a row. Price reductions are quite common in today's market. There are fewer multiple offer situations, and most homes are selling below their asking prices.......this is a normal market. The issue is that nobody has experienced a normal market in several years and it is hard to recall when housing was just ordinary. - Steven Thomas, an economist with Reports on Housing.
Those Sellers that need to sell are taking necessary action to sell their homes whereas those Sellers who want to sell are continuing to remain patient and ok with longer market times. Inventory remains low, and homes that are move-in ready and priced at the market are still selling quickly.
This can all be confusing so if you have specific questions on the market...I encourage you to call me at 858-220-6412 to discuss this in more detail.
Although sales prices remain up from this time last year, price growth is expected to moderate in the months ahead as the market continues to shift in a more buyer-friendly direction. Many economists of late have remarked on the market's more even-keel turn. According to Mark Fleming, chief economist at First American, What goes up, must eventually moderate...As some buyers pull back from the market due to affordability and supply constraints and as new construction adds more supply, house prices will moderate, resulting in a more balanced housing market.
For the fourth week in a row, homes are sitting on the market for a longer time than last year. Jiayi Xu - economist for Realtor.com adds As both buyers and sellers adjust to the rebalancing market, expectations shift, reducing the sense of urgency in the market and reinforcing the trend toward longer sale timelines.
Most homes are not sold instantly. Busy intersections are now adorned with weekend Open House signs. It is not uncommon to see the same home open for several weeks in a row. Price reductions are quite common in today's market. There are fewer multiple offer situations, and most homes are selling below their asking prices.......this is a normal market. The issue is that nobody has experienced a normal market in several years and it is hard to recall when housing was just ordinary. - Steven Thomas, an economist with Reports on Housing.
Those Sellers that need to sell are taking necessary action to sell their homes whereas those Sellers who want to sell are continuing to remain patient and ok with longer market times. Inventory remains low, and homes that are move-in ready and priced at the market are still selling quickly.
This can all be confusing so if you have specific questions on the market...I encourage you to call me at 858-220-6412 to discuss this in more detail.
Ben Anderson
License DRE# 01369906
Broker DRE# 01767484
1111 Prospect Street, Suite 100, La Jolla, California 92037
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1111 Prospect Street, Suite 100, La Jolla, California 92037
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