By Andy Meeks, July 12, 2022
Our June market stats are here, and they confirm what we’ve been experiencing and feeling over the past two months: the market is most definitely in a cooling phase. Top takeaways: a 11.5% increase in inventory from May and a notable decrease in average sales prices (down 2.5% from May), the first decrease in average sales prices since February.
June is typically the peak for average sales prices, because this is when buyer activity levels are also the highest. Strong competition pushes prices higher. And no doubt that demand remains strong as there are lots of buyers out there still trying to find a home, and demographic trends provide a tailwind for continued strong demand. But it seems as if we’ve seen our annual sales prices peak a bit earlier this year. And one of the biggest reasons for this slight shift is the rapid increase in interest rates — from somewhere in the 3% range to now somewhere in the 6% range — all of which happened in the *very* short timespan of 4-6 weeks.
So even with steady demand still present, buyer’s buying power has been diminshed because of these higher interest rates. And that has the effect of price increases slowing down, as well as a reduction in the number of multiple offer situations where sales prices go significantly over asking price. This doesn’t mean there is a crash ahead, or prices are going to drop significantly, but we are seeing a moderating trend that is great news for buyers who are patient and know their limits. Well-priced and well-presented homes in solid condition will still continue to sell at a steady clip, so sellers shouldn’t panic.
This dynamic market continues to evolve rapidly, and so it’s more important now than ever to have someone who can help you navigate this market in a way that empowers you with actionable information and maximizes your leverage, whether you’re a buyer or a seller. If you have questions, or know someone who does, let’s connect!
Andy Meeks
Principal Broker | OR
My clients are always my top priority, and my singular focus is their success. This is the intention I set every day. My training and background as a licensed attorney helps me lead with a sharp attention to detail, a keen ear and focused voice, and an unwavering commitment to integrity, transparency and discretion...
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- T: 971-400-0195
- andy@livingroomre.com
