Our market has drastically changed over the past few months as inflation rate keeps rising. The FED put our CPI at 9.1% for the month of July and many of us started noticing the price of virtually everything going up. It’s looking more and more like a recession is eminent according to many of the big banks on Wall Street as many funds begin to lay people off. As far as local housing prices goes, June finished at the same Median Sales Price ($445,000) as it was in May; however, this was the first month that the value didn’t go up. The amount of homes available was perhaps the most drastic change of 8,848 active listings during the month of June compared to 6,590 in the month of May.
Week by week we see the amount of price decreases go up in quantity as well as an increase of a few hundred homes every week. As mortgage rates stayed steady, more and more buyers cancelled their purchase for whatever reason and this is a trend that will likely continue going into a recession. One of the reasons we’re very thorough when we’re going over offers is that some are just simply stronger than others. While the demand was at an all time high in 2020, buyers would go make offers on various properties while only intending on purchasing one.
We start to see the buy pressure from the hedge funds as it’s going back to more first time buyers and non-cash financing which allows more people to be able to compete for homes. When the rates hit that low back in 2020, buyers were buying and refinancing to take advantage of the low rates. The issue is they now have no incentives to ever sell their property which makes the supply chain worsen. Now that we’re getting back to a normal market, buyers will once again have more leverage over sellers.