The weather is heating up, but it appears the Sellers market may be experiencing some June gloom. Interest rates are on the rise and the job market is weak which may be early indications that a housing market downturn is imminent. This was recently highlighted by the OC Register: Click Here
But I notice it more in the changes of buyer and seller behavior (aka Behavioral Economics). It starts subtly, but has been noticeable as of late:
- Sellers concerned about being on the market a few weeks without offers
- Buyers wanting to see more homes before making a decision and taking longer to move forward with a purchase
- Concern about rates and affordability as the average home price in OC is over $800,000
Just as in late 2011, when I started to experience multiple offers and was interviewed by the OC register (see article) well before the media was pronouncing the uptick, I was seeing it first hand with my clients.
Accordingly, I predict this summer will be slower than expected. New listings are coming on in waves and Buyers are slower to jump, but they are still buying. Now is the time to get in before the market swings too far for Sellers.
Sincerely, Sari (& Team)