Are we about to finally see the real estate market slow down?
Some experts are starting to sound off that this is around the corner.
They point to the sudden jump in the 30 year fixed rate upwards of 5.5% and the crazy growth in real estate prices.
Double-digit prices increases just don’t seem to be sustainable without pricing a huge chunk of buyers out of the market.
And few buyers means shrinking demand.
My educated hunch is that the rate of price growth will slow down significantly this fall.
Home are still red hot this spring, but with the coming of vacation season and fall school, demand usually drops off significantly.
Higher interest rates will also act as head winds to rapidly appreciating prices. Homes still have to fit into the family budget!
Have a great week!
David Baker, Broker/Owner
Baker Realty Group