We all knew it was coming. I’m here to tell you before many agents even know it’s happening. Inventory is increasing, competition between buyers is decreasing, & mortgage rates are going up. All this means less people can afford to shop for a home. The Federal Reserve kept rates low for way too long. (a major reason for buyer competition over the last two years) They’re now deciding to push rates up to fight inflation. This rise in rates combined with the last two years of appreciation in home values has now priced many buyer’s out of the market. We’ve had the most extreme seller’s market over the last two years. We now finally have about double the inventory of the previous record low.
We had to reach a breaking point. A balanced market that equally favors buyers & sellers has six months of inventory. We’ve been at less than one month for many segments of our inventory for quite awhile. We’ve gone from 3 weeks of inventory, to 6 weeks of inventory in very short order over 2 months. All this while the interest rates on new contracts has almost doubled. If you’ve been riding the 15-25% appreciation to the last stop, I’m here to help you off the train.
There are now at 1.4 months of inventory for single family homes. Remember we’re only 1/3 of the way to a truly balanced market. If you’ve been waiting to sell, do NOT wait any longer than you have to, the party is over. The music has stopped. As you wait, more & more people just like you will be putting their home on the market for one reason or another. Your home will no longer create a sense of desperation in potential buyers. They’ll have more options to choose from. They’ll know that if they don’t buy your home, more will be coming along soon.
If you want to sell, you still have time to get a great price. You have more options than you ever have for a solution to your reason for selling. We’ve partnered with buyers willing to buy your home and let you stay & rent from them for up to a year. We also have solutions available that can let you access a majority of your equity now, and sell when you move out; keeping any additional equity that is created between now & then. I can discuss these options & compare the benefits of selling now on the open market side by side with you. You can start by visiting our page here & requesting a cash offer. I’ll include an open market analysis right along with it. Visit here to get started.