It’s summer!! Or is it? Both the weather and the market are acting contrary to that sentiment! While we are looking forward to beach days and vacations, the clouds and the continued accelerated pace of the real estate market are making it difficult for us realtors and buyers alike.
So, will things really slow down as many are predicting?
NAR chief economist is forecasting that home appreciation will cool to a more normal 5% by the end of this year (we have been seeing 10-20% appreciation the last 2 years). A slowdown would actually be healthy for our market. While rising interest rates are affecting many parts of the market, in the South Bay, we are still seeing multiple offers and over-ask sales for anything under $5M and many properties over that price point. It remains a sellers market—although we are seeing better inventory for our buyers. We hear many people saying that “the inventory is so limited” and while it is traditionally low, it looks much lower than it actually is because homes are moving so quickly. So while more houses are hitting the market each week, since many are selling in 7 days or less, it doesn’t seem like the inventory is growing.
Additionally, we are still seeing a lot of off market activity locally.
Fast sales and off market properties are two of the many reasons to make sure you’re working with an experienced agent when looking to buy. Please let us know if/how we can help. We are here for you!
- Lauren