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A note from Tami Pardee
Summer’s here and the hot market is starting to cool down a bit. We’ve seen it, others have written about it, and maybe you’ve read about it. While it’s true that we’re not seeing quite the frenzy we were in 2021 and early 2022, an important thing to understand is that a slowdown doesn’t mean a downturn. The market might be projected to grow at a slower pace for a while, however, in our experience (almost 20 years now) it is cyclical
Owning property remains one of the best hedges against inflation and a growing investment you can also live in. I believe it is of utmost importance to know where you stand as the market shifts into the next cycle; knowledge is power! Having a good understanding of your property value can help you plan smarter— whether it’s estate planning, kids, leasing, retirement planning, or any other financial life decisions. In fact, if you are planning your next step in life, it is easier now to move to another property than during the past couple of years because we are seeing a more balanced market.
We know your home is your biggest financial asset, and the news about market shifts can feel very overwhelming. We want to assure you that we’ve been here through market shifts before. We always remain strong, steadfast, and sensitive; this is how we do business during the lows (like 2008) as well as during the highs (2020-2021). This is why I always encourage you, as a member of our local community, to reach out to us for an assessment. We’ve partnered with people for many years who have never bought or sold a house with us to be that conduit of information through various market conditions.
Connect with us for an assessment of your own home so we can help identify your best path forward. Let’s navigate through this together.
What I’m noticing in the market
Higher Interest Rates
No doubt higher interest rates are a hot topic. With June’s inflation rate coming in above 9%, we forecast that the Federal Reserve will continue to raise interest rates. Mortgage rates often follow — although, not always, which may increase the cost of buying a home. Yet, looking back 40+ years, interest rates are still relatively low. We are still seeing many Buyers obtain mortgages and many are competing and beating cash buyers.
We’ve seen more and more homes for sale during Q2. This was to be expected; record-low inventory couldn’t last forever. We welcome the increase in homes for sale for both Buyers and Sellers. Buyers will appreciate greater selection and less competition. For Sellers looking to move, less competition means it will be easier to concurrently buy and sell, reducing the stress and costs of moving on to your next life phase.