Timing Is Everything
Sellers don't want
to hear it right now, but they are not getting the same price for their house
that was obtainable in April and May.
The market has changed. The sense
of urgency among buyers has vanished.
Since June it has transformed to more of a buyer's market from a serious
seller's market in April and May.
Why? Several factors combined to produce the
condition we are seeing now. First, the
month of June usually slows down even in a raging market because families get
away from real estate. There are kids
getting out of school, vacations, weddings and graduation. New escrows typically decline in June
compared to April and May. Second, in
June there was a slight increase in interest rates with rumors of even higher
interest rates scaring away buyers.
Third, the feeding frenzy in April and May, which resulted in amazingly
high prices and a lot of people to wanting to cash in,
causing a flood of inventory.
Don't panic. The higher interest rates rumored after the
June increase never happened. We
continue at historic low rates. The
economy is stable. The real estate
market needed a correction. I predict
that it will continue flat through the next few months of this year, and pick
up again next spring.