By Scott Sackin
Okay, I’ll start off by saying that I’m the boots-on-the-ground guy watching, looking, and feeling what’s happening in the market. I leave the stats to Lane.
Here are the big three that I’m seeing right now:
Increase in Open Houses
Last weekend, one of the intersections in our market area that’s been barren lately, was a circus of 5 open house flags/sign combos vying for attention. Takeaway: More listings are coming to the market.
Bank Appraisals Coming in Below Sales Price
That’s right, our last three came in closer to the asking price, not the ‘over asking price’ that the buyer was willing to pay. Takeaway: Banks are telling their appraisers to finally put a lid on it and not appraise ‘into’ the market.
Fewer Offers & Longer Lead Time from Launch to Offer
Offers are now coming in a week or more after launch, not in a few days like we’ve become used to (and there are fewer of them). Takeaway: Buyers have less fear of competition and potential bidding wars.
Final Opinion
Inflation and interest rates are removing buyers from the “marketplace pyramid.” This will percolate to all price segments. Recession fears will also factor into the mix. Prediction: This will result in a normalization of the supply-demand relationship, not a crash. Buyers will have time to think before making an offer. Sellers will need to be realistic on pricing, understanding it just takes one good offer to get their home sold.
Will The Market Crash in 2022? Real Estate Market Forecast – Orange County Real Estate Beat
With the Fed expecting to raise interest rates 3 times in 2022, how will it affect the real estate market?
Dive in today as Scott and Lane discuss home prices, inventory, interest rates, and buyer demand for 2022.
