Predictions Coming True!

As mentioned in my previous post on April 23, I mentioned how vulnerable the market was to change. Well, it is happenning as we speak. In the months of June through September, (which are historically a little slower), this year we had the fewest sales in detached homes in 4 decades! Unforunately the news media, or in fact the Real Estate industry, is always late to the table to assist our client base with really getting the straight goods on actual market conditions. I know that most clients do not really care about sales or listings, I get it. We all mostly only care about our equity! However, when sales collapse, the price structure is not far behind. The latest round of interest rate hikes have bastardized our Buyer pool. When there are no Buyers that can qualify to enter the market, or in fact move up in value, our market structure can collapse. Prices will certainly fall. The degree to which prices will fall is directly connected to the "Seller urgency" over the next 6-18 months. If there is fear or panic amongst the Sellers that really do have to sell, we will see a more signiificant adjustment. If most Sellers are ok with not selling, then sales will be slow, but prices will only drop gradually. Time will tell, stay tuned! As usual, call me if you would appreciate competent reliable advice!...Brent