We have 30-40% less buyers than 3-4 months ago due to rates. Our inventory has quadrupled, and we are seeing the march toward a normal market.
Before Covid, we had approximately 3500-4000 homes on the market in both Marion and surrounding Counties. When Covid hit, most people paused their moving plans, and buyer demand increased either because of exiting big cities, or after spending much time at home they made babies (need more room), decided they did not like their spouse and because everyone was indoors it was more evident (need less room or a second house), or wanted work space because they are now working from home so they needed a home with an office or two. Additionally many potential sellers did not want people in their home.
Now, enter high rates and inflation. Two huge drivers…Less buyers are qualified due to the average mortgage rate doubling and average payment going up $1000 a month. Add to that gas, grocery and already inflated prices, and its obvious that the affordability is a huge issue now. At 3% rates inflation was not noticed as much.
So to sellers, I cannot stress enough that this is not going away. The best time to sell was 3 months ago, the next best time is now. If more homes come on and rates go up, you will net less. Never before has good marketing been more important.
For buyers, now is the best time in 3 years to find a home you like, as there is way more for sale, sellers are now rarely getting over asking price for their homes, if they even get an offer, and it looks like there will still be some slight appreciation this year to take advantage off.
This is not 2008-2012. Not even close. There is no bust coming. Things are just settling down, and days on market will likely goto 120-150.
We will get through this together.