āThe sharp increase in mortgage rates is pushing more homebuyers out of the market, but it also appears to be discouraging some homeowners from selling. With demand and supply both slipping, the market isnāt likely to flip from a sellerās market to a buyerās market anytime soon.ā
So no, the crash is not coming. Number of listings are still over 20% less than they were last year which means supply is continuing to go down. Really looks like 2021 was the best time to buy a house (okay supply, low interest rates).
Some prices are dropping but if youāre in a popular area this isnāt going to apply to you just yet. I donāt think this summer is going to have a lot of listings just dropping in price in places like SF or Seattle.
Seattle had normal levels of summer inventory in March according to Redfin, it could slow down but itās unlikely. Iād expect (and am already starting, to some small extent) to see less places listed to start bidding wars and being on the market for longer than a week.
That doesnāt mean Housing market crash, rising interest rates are expected to slow down the super fast price growth and demand would gradually go down but not going to die.
Is a housing market crash needed to move the home prices pre-covid level? Honestly, I would be happy for prices to go down to even out the recent interest increase to the summer 2021 level
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āThe sharp increase in mortgage rates is pushing more homebuyers out of the market, but it also appears to be discouraging some homeowners from selling. With demand and supply both slipping, the market isnāt likely to flip from a sellerās market to a buyerās market anytime soon.ā
So no, the crash is not coming. Number of listings are still over 20% less than they were last year which means supply is continuing to go down. Really looks like 2021 was the best time to buy a house (okay supply, low interest rates).
Some prices are dropping but if youāre in a popular area this isnāt going to apply to you just yet. I donāt think this summer is going to have a lot of listings just dropping in price in places like SF or Seattle.
Itās expected and priced in