Sellers are dropping their prices?
Hey everyone. Adam here! You already know we are buying houses in Rockford and in the last couple of weeks I was thinking how long this market can sustain that growth? We are 14 years in the bull run and what?
I remember when it was 2008 and home prices were dropping like crazy and I didn’t know what happened. I wasn’t into real estate back then but remember everybody was talking about it. Today I’m reflecting on that and today’s market looked familiar? Let’s take a look at what is going on and what giants like Redfin have to say about that. According to an article published by Redfin on April 14 Demand Slips, Pushing More Sellers to Drop Asking Price. When I saw that article I was Like here it goes! Redfin says that sellers are lowering their asking prices due to mortgage rates that hit 5%. Typical mortgage payment went up 35% year over year. Some of the early indicators that tell us that demand is softening where typically this time of the year they spring up.
Fewer people searched “ homes for sale” on google. They were down 3% from a year ago. The Redfin Home Buyer Demand Index that measures requests for showings has dropped 3% in the past month. Mortgage applications dropped 6% from a year ago and on top of that mortgage interest rates shot up above 5% – the highest level since February 2011.
Another factor that shows us that demand doesn’t meet sellers expectations is the fastest incline of new listings that had price drops. It’s the fastest incline since 2015.
“The sharp increase in mortgage rates is pushing more homebuyers out of the market, but it also appears to be discouraging some homeowners from selling. With demand and supply both slipping, the market isn’t likely to flip from a seller’s market to a buyer’s market anytime soon.” said Redfin Chief Economist Daryl Fairweather.
Is that true? We don’t know that and neither do Redfin. What we have are facts and logic. Everybody knows that the market can’t go up forever and despite all the craziness going on in the real estate industry my personal belief is we are getting close to the end. “If a home is on the market for more than a week, people start to wonder why or assume something is wrong with it,” said Redfin Boston real estate agent James Gulden. “Every offer I’ve written recently has faced multiple offers, but some people have finally had enough of all the competition and are pulling out. They’re becoming less willing to make a risky offer in a high-stress bidding war situation.” Redfin Boston real estate agent James Gulden said.
Like you can see, some of the early signs indicate the slow down in the real estate market may have begun. Please take into your consideration that what is happening in the world is not helping the economy and being careful in this market is crucial.
If you would like to sell your house fast, please call our office at 847 242 2212 or shoot us an email – Info@moderntimeshomes.com. We will work with you to assess your situation; we will give you a fair Cash offer and you can choose the closing day. Call us Now!!