As most of us know, the real estate market as been rather crazy these past few years. No doubt, Covid turn things upside down and created a frenzy of sales, buyers, multi-offers, cash buyers, etc. to the tun we had really not seen before.
Now with interest rates steadily increasing along with a lower inventory of homes to buy, home sales have now decreased three months in a row. One of the main reasons the market has slowed down is, in part, due to the fact that prospective sellers are hesitant to sell because many of them currently have a low interest rate so if they were to sell and try to buy again, they would be forced to secure an interest rate much higher than they currently have.
My personal opinion is until rates get back to the 3% and 4% range, which probably won’t happen for a while, not only will home sales decrease, but we will soon see a decrease in prices as well, because many potential buyers will decide to sit on the sidelines for a while and to see if interest rates will come back down
For more information about this, here is a recent article from Realtor.com that further explains what the market is doing:
Read the Original Article Here: U.S. Existing Homes Sales Fall for Third Straight Month in April
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