The housing market is returning to normal. A widely competitive housing market has shifted so quickly from a super competitive Sellers’ Market to a Buyers’ Market. Homes once selling with multiple (nearly half a dozen) offers above asking are now back to typical conditions with buyers able to once again “negotiate” on the asking price.
You know who hasn’t gotten the message yet? Sellers. Days on Market (DOM) have been increasing locally as higher rates translates to a 25% drop in buyers’ purchasing power. At the beginning of the year, a $360,000 home with a $1400/month payment is now just a $270,000 home with the same $1400/month payment with the near-6% mortgage rates. Meanwhile, the new median price for an existing US home hit a record high of $407,600 last month!
