Is The Sky Falling?

Randal:

- Is the sky falling? Stay tuned.

Erik:

- Welcome to Stay Focused, Focus Real Estate's weekly video series. It's 2022, and we haven't done a market update and a lot has changed in the real estate market and a lot hasn't in many ways. But what's happening in real estate market here?

Randal:

- Well, you know, I think the biggest overriding factor more than anything is the rise of interest rates, right? I think if you have a pulse or you watch anything.

Erik:

- Or read the news.

Randal:

- Consume any kind of social media or news, you know the interest rates have come up, the economy is shifting to stave off a little bit of the inflation that's happening. And what that is doing is it's affecting, it's slowing down our real estate. Are we excited about the slowdown? Absolutely, we're excited about the slowdown because when there's 10 offers on every single property out there, but only one person can get it, let's just say 50% of the buyers no longer qualify to buy homes in a certain market, that's going to slow our market down significantly. But it's not a drop off the cliff, which is often--.

Erik:

- Sky is falling. Sky is falling.

Randal:

- Yeah, Fannie Mae and Freddie Mac are actually predicting a 3.2 increase in property values between now and July, 2023. Zillow is predicting something a tad bit higher at 6.3%. MarketWatch was saying yesterday 5.9% on the optimistic side. So the sky is not falling.

Erik:

- That's actually a balanced, reasonable kind of 100 year average growth in real estate prices. So what we're talking about, this change in the market was intentional to slow inflation, slow the hot real estate, hot economy, rising prices that were affecting everyone.

Randal:

- Everyone. You know, the reason I'm kind of excited about this change is that it's going to enable us to move the clients that wanted to move but were so afraid of being homeless because there's nothing else out there to buy. Our inventory came up about 100% about two months ago, and is actually starting to come down with our seasonal shift into the summer. So, we're actually not seeing skyrocketing amounts of inventory hit the market. It's still being absorbed, and there is still a market out there to sell your home and it's an easier market as a buyer. It's an easier market as a buyer with home inspections,

Erik:

- Mortgage contingencies

Randal:

- Mortgage contingencies, with being able to take a breath.

Erik:

- Contingency maybe even to sell a home. Summer only lasts a couple months of good weather in New England. And so, buyers and sellers take advantage of that. We see a little bit of seasonal lull all the time.

Randal:

- And I watched one of my last videos, and I don't know whether I edited it as a Stay Focused video or simply as a Reel on Instagram, but you know, everybody's on the Cape.

Erik:

- Exactly.

Randal:

- Some people get outta the city, so this is a wonderful time to be doing a search in the city 'cause we still have inventory, so.

Erik:

- And not as many buyers to compete with.

Randal:

- Indeed. Thanks for watching. If you want any more detailed information about exactly what is going on in the market in your sector, feel free to reach out. But until next time.

Erik and Randal:

- Stay tuned and stay focused.

- Welcome back to Stay Focused, Focus wheel

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