Unless you were totally off the grid living your best #vanlife this summer, you probably know the basics:
- Prices are down
- Interest rates are up
But can we parse that a bit more for you? We sure can!
In short, what reads like doom and gloom is actually a fairly balanced environment. Balance is a good thing! However, it might feel alarming because the market was SO out of whack for so long.
The spring of this year was as hot a market as we’ve ever seen. Rampant overbidding, a steep run-up in prices, off-the-charts demand, and a rush to get into homes before the promised interest rate hikes materialized. Was this healthy? Universal consensus was that nooooo, it certainly was not. Everyone complained about it (aside from a few sellers who cashed out and left the state). It was pretty frightening and discouraging; a clear symptom of the much-talked-about inflation issue.
So now that things have cooled off a bit, everyone’s breathing a collective sigh of relief, right? Hahaha – no way! Look, market shifts are uncomfortable. Change. The unknown. All of that good stuff. And there’s plenty to go around. Sellers are watching their Zestimates ease off of a 10+ year high. Buyers are coping with the swiftest interest rate hike in history. It’s a lot.
Take heart and remember a couple of things.
Homeowners/Sellers: we had an amazing run. REALLY amazing. Most property owners will never see the type of appreciation that CA has experienced in the past few years. If you’re thinking of selling in 2022, you are still pretty darn close to the top of the market cycle.
Buyers: 5% only seems high. No need to take my word for it – check out the historical charts. Boomers took out mortgages at 10% or more for YEARS. So don’t feel like you missed the boat. Rising rates plus a stock market wallop isn’t a day at the beach. But it means you won’t have to battle 20 other buyers just to get your offer accepted.
Apologies if this sounds like a tired “it’s always a good time to buy/sell” Realtor line. These things are complex and personal. It’s a good time when your personal stars align. We’re just bringing a little big picture context to the table.
Agents who’ve never faced a shifting market are finding it tough to counsel their clients. Us? Well, we’ve been here before. A couple of times, actually! So please, contact us anytime (really, we mean it), if you are thinking about making a move. It would be our privilege to help you on the journey.