My View From Inside

We’re almost to the halfway point of the year! While the market isn’t as flaming hot as it has been over the last two years, it’s still a steady burn. Here’s what to expect for the rest of the year:

 

The number of homes for sale is increasing

Fewer new Conejo Valley listings hit the market in May compared to April, yet the month ended with more homes for sale than the previous month. Translation: homes aren’t selling as fast as they once were. Inventory growth is trending upwards and according to the experts, that trend is likely to continue.

 

“The gap between this year’s homes for sale and last year’s is one-fifth the size that it was at the beginning of the year. The catch up is likely to continue, . . . This growth will mean more options for shoppers than they’ve had in a while, even though inventory continues to lag pre-pandemic normal.”

Danielle Hale | Chief Economist at Realtor.com

 

Interest Rates are expected to continue up, but at a slower rate

The increase in mortgage rates has definitely impacted the real estate market throughout the country. Some buyers have opted to sit on the sidelines hoping for rates to dip. However a dip is not likely as the Fed continues to raise rates to battle inflation.  

 

“Sellers are worried about inflation, while buyers are concerned about the economy. With the Federal Reserve raising short-term interest rates in half-a-percentage-point increments at its June and July meetings, I expect mortgage rates will continue their upward trek.”

Nadia Evangelou | Director of Forecasting for the National Association of Realtors. 

 

Home Prices continue to climb and are expected to continue up

In spite of the rising interest rates and global economic concerns, demand for housing still greatly outweighs supply. Multiple offers continue to dominate the market and drive up prices. 

 

“Prices throughout the country have surged for the better part of two years, including in the first quarter of 2022…Given the extremely low inventory, we’re unlikely to see price declines, but appreciation should slow in the coming months.”

Lawrence Yun | Chief Economist at the National Association of Realtors (NAR)

 

Bottom Line…

In spite of higher interest rates and rising home prices, multiple offers continue to dominate the market, but not to the extent they once did. Buyers are more cautious and are probably a bit fatigued after competing for so long. However, real estate remains an excellent hedge against inflation. And with both home prices and rates on the rise, it’s still a good time to buy.

 

 

On a scale from 1-10, are we in a seller’s market?