Here's the latest news in the market every buyer and seller should know.
Many of my clients want to know how the rise in interest rates and surging inflation will affect the market. Today I’ll respond to these concerns by covering a few important market updates that all buyers and sellers should know about.
At the beginning of the year, we had rates that were as low as 2.7%. Now rates are as high as 6%. For buyers, this means that they can afford less of a home compared to the beginning of the year. Due to this, sellers can expect fewer buyers competing for their homes. Inventory has risen 44% last month. With more inventory and fewer buyers, we are now shifting into a buyer’s market.
As for whether we’re in a recession or not, you have to remember that a recession is defined as two-quarters back-to-back of negative GDP. We had a negative GDP during the first quarter of the year, but the statistics for June aren’t out yet. We’ll have to wait and see by the end of the month.
If you have more questions about the real estate market, don’t hesitate to call or email me. I’ll be happy to help!