We have noticed a lot of people asking the same question, so we figured we would give you our thoughts on the subject and provide some insight!
Is the real estate market changing?
There are three main points we would like to cover regarding this topic
1) Interest Rates
Interest rates have increased and are projected to rise even more. Rates do affect the market but we have not seen any SUBSTANTIAL changes locally that we can tie directly to rate increases. Despite interest rates increasing over the last year, they are still at historical lows.
Our inventory of homes on the market has increased slightly over the summer months but we are still relatively low. We are still seeing a competitive market for buyers, mostly in the $300,000 and lower price range. It is important however to know that this varies with different factors like location, price, and amenities offered.
3.) Price Reductions
Most importantly, we have been seeing a drastic increase in price reductions on current inventory compared to the first half of the year. Some days we are seeing more price reductions than new listings showing up on the market. Reductions are happening on more than just those “oddball” homes or properties that fall outside the norms, the reductions are happening on nearly ALL home and property types.
Now you ask…. Is this an indication of a changing/stabilizing market…or… is the hot market we all have been seeing leaving sellers expecting more than they can sell for? This could possibly be a little bit of both and we will learn more as we continue to work through the next couple months.
We think it is important for our clients to know that it is still a strong market overall and should be for a while. We are not expecting any DRASTIC changes anytime soon. Sellers are still holding great equity in their homes and buyers are still locking in great deals with quality interest rates. It is still a smart time to list and sell your home and the market is starting to get a little better for buyers, so everyone is still winning!
We enjoy keeping everyone informed and if there are ever any questions you can reach a team member at 541-778-9677. If you have any questions or would like to explore your options to sell or buy just give us a call.
The Rutledge Property Group
(YOUR Local Real Estate Professionals)