As you can imagine we continue to be asked by buyers and sellers just what the changes in the economy are doing to the market. We’re always thrilled to share our experiences, but this market is certainly unique. So anecdotal evidence seemed more apt right now than hard core economics.
On the selling side, Quinn & Wilson agents are still listing properties and they are still selling with multiple bids. Some of that is attributable to the experience of our team and their ability to price properly, but some of it is still a reflection of the lack of available homes for sale. This drought is not expected to end anytime soon. As the National Associaion of Realtors has pointed out in their demographic studies, Americans in their prime family-formation and home-buying years are the largest cohort ever seen in recorded history. With that many people looking for the next phase of their life, there is always going to be competition.
On the buying side, of course mortgage rates are having an impact. When the rate doubles in the course of a calendar year there are going to be some people for whom the monthly payment is just too high. We continue to work with them to find a buying option, however, because jumping into an apartment (where rents continue to rise based on the same supply-and-demand issues) does not allow them to build any equity towards a larger property when rates settle. That said, there are still many people who recognize that a 6-7% mortgage is not the end of the world.
All-in-all, the advice here is that if you are a seller, and you know where you want to go, the market is still there for you. You may not get the over-the-moon prices your neighbors did, but prices continue to rise. Let us counsel you on the best ways to maximize your opportunities.