For the first time since 2008 we are seeing a dramatic change in the real estate market. Where the change will settle is yet to be determined.  Three major factors are influencing buyers' attitudes and budgets. First are interest rates, second is inflation, and third is the loss in the stock markets. These three factors are conspiring against buyers loan capacity, budget for monthly payments, and down payment capacity. The true buyers frenzy is gone, and buyers are being more cautious. The consequences are purchase prices are stabilizing and are no longer increasing at unsustainable rates. Terms of purchase contracts are evening out and even moving in favor of buyers. 

The effect has started with condos (always the canary in the coal mine for the real estate market) and lower priced homes, where the changes affect those at their limits the most.  From the chart you can also see it varies by city location.  

The net result is that it is still a good time to sell. There are more buyers than sellers. Prices are still higher than they were a year ago, just not increasing at the same rate.

 If you are thinking of buying or selling and want to know how the change in the market affects your situation, contact us and we will walk you through the home selling/buying process.