In an effort not to bury the lede, we are starting to see home prices cool off a little after two years of drastic increases. With that said, do not expect a plunge as another 2007-2008 is not in the cards. What this means is that we will see a market correction with price increases steadily shrinking and inventory increasing. A market balance is in the works, which is wonderful news. 

What is the cause of this “cool” down? 

The rise in mortgage rates started it all when they shot up to 5.8 percent, but have come down to hover around 5 percent now. We may see one more increase next month, but as a result, sales have slowed. Banks are more cautious today with their lending standards and credit scores need to be higher now than they were 15 years ago. 

My advice to you as a realtor? Do not try to time the market. 

If you do not get the timing exactly 100 percent correct, you risk losing out on the natural forces of markets and time. If you sell a property try to replace it quickly as the costs of renting often pale in comparison to the multiple advantages of ownership. 

Currently, cash sitting in the bank is losing at least 5 percent of its value every year, if not more. 

As always, if I can be of any assistance with helping you buy or sell a home, let me know because the time is now.

Have a sensational September!

Christy

Alison JensenSeptember 1, 2022