It appears the real estate market peaked in April of this year. Multiple offers on listings began decreasing in May and it is likely we continue to see reductions in purchase prices and multiple offers in the coming months. In addition, it is anticipated inventory will increase as listed properties stay on the market longer.
The Federal Reserve’s recent announcement of a ¾% interest rate increase puts additional pressure on prices as buyers adjust to increasing mortgage rates. Some analysts predict that the Federal Reserve continues increasing interest rates, possibly into 2023, in their effort to combat inflation.
Who comes out ahead in a market with rising interest rates and an increased inventory of properties? – All cash home buyers and apartment investors! They can acquire properties at very attractive prices in the months ahead. The rental market is strong and getting stronger. It is more important than ever for landlords to pay close attention to their rents and carefully manage them to adjust to the high current demand while staying in the parameters established by the state of California and local jurisdictions regarding rent increases.
If you currently have a property listed at a price based on the lower interest rates we had back in April or May, consider adjusting your asking price to reflect the current interest rate environment we find ourselves in. With the prospect of future rate increases, now is the time to get ahead of the curve.
If you or a friend are looking to buy or sell in the next 3-6 months, or your current realtor isn’t actively managing your listing, call or text me today for a free consultation 310.308.4256.
Erin Blakeslee DRE 01912347 Coldwell Banker Realty 310.308.4256 email@example.com erinblakeslee.com