Here’s a quick update on trends we’ve been following in the market.

Let’s talk about what’s been happening in the real estate market over the last couple of weeks and what we predict will occur later in the spring and summer.

Though home prices haven’t gone down, rising interest rates have caused a normalization in the market. Sellers’ homes haven't decreased in value, but buyers are gaining some negotiating power.

For example, suppose a buyer is looking at a $300,000 house, and they’re willing to pay $10,000 over the appraised value. If the house appraises for just $250,000, the buyer’s loan maximum becomes $250,000. The extra $10,000 the buyer offered no longer covers the gap. Instead of the seller simply moving on to a different offer and killing the deal outright, they might be more inclined to meet the buyer in the middle.

Home prices haven’t gone down, but buyers have some more negotiating power.

We’ve seen no indication that home price increases will slow down anytime soon. However, because supply and demand remain the same as interest rates rise, home sellers are going to have to adjust accordingly.

If you have any questions about what’s going on in today’s market or how it affects you, give us a call or send us an email. We’d love to help you.