The tide is turning

The impacts of this year’s economic headwinds – soaring inflation and interest rates, stock market declines, and fears of recession – are having an impact on the housing market.  As the Tide Turned... The first effect was on buyer demand (fewer buyers, fewer offers, less overbidding and fewer homes into contract), leading to changes in supply (more homes for sale, more price reductions), which led to lower appreciation rates and fewer homes selling.  All of these began to alter buyer and seller psychology and the balance of power between them. As we enter the second half of 2022, we are seeing a new breed of home buyers emerge. And the tide is turning for home sellers. A New Breed of Home Buyers  With mortgage rates that have almost doubled since the beginning of the year and down payments tied to  a volatile stock market,  home buyers are re-balancing their priorities. They are adjusting their expectations to align with their level of home purchase affordability, and they are becoming hyper-selective. Not just any house will do. So, what does this mean for home sellers? The Tide is Turning for Sellers Gone are the days of frenzied home buying that we've seen over the last few years. The good news is that an overheated market slowing from an unsustainable rate of acceleration, does not necessarily imply a weak market by historical standards, even if the speed and scale of the change is startling. A correction is not a crash. Market corrections over the last 40 years typically ran from a flattening in appreciation, to price adjustments of 5% to 10% (relatively small compared to the appreciation rates which preceded them). Going into the second-half of 2022, sellers can expect buyers to be more cautious about making an offer on a home. Sellers need to align their mindset with the new breed of buyers and focus on delivering value. Now more than ever before, take steps to enhance your home’s appeal, make it move-in ready, and price it with laser-like precision. By delivering value to the new breed of home buyers, you can still attract top dollar for your home! June Market Report Is someone you know, ready to move?  Let me know - I can help. marketingcenter-sfbayarea-sfcityproper