August 2022 Market Update

July brought the number of listings under contract to the lowest we have seen since 2018 due to rising interest rates.

Buyers are a bit sticker shocked at getting less home for their money, and some were even priced out of the market. We continue to see a record number of sales on homes priced $900,000 and up in our region.

We also continue to see a shortage of inventory, with only 1.3 months of supply.

In a healthy market, the difference between a seller and buyer's market is 6 months of inventory. Because of this, we don't anticipate any sort of market crash. We are in the middle of a correction due to the aforementioned interest rate hikes.

Instead of multiple offers within hours of a listing going active, and selling to the highest bidder who had to waive appraisal price and bid way over market value, we are seeing homes taking a bit longer to sell in many areas. 

Here's the takeaway: Buyers who have been patiently saving money are going to finally have a chance to negotiate in the coming months. Sellers who are willing to price the market right and appeal to all types of Buyer financing will continue to have the upper hand. Those who want to "test" the market by pricing their home higher in the beginning may not like the results- and those are the types of "deals" Buyers will be able to negotiate. Remember, the longer you sit on the market the more it may look like something is wrong- especially if other homes in your area are selling.

If you need help navigating this quickly-changing market, The Milestone Team is here to help. Contact any one of us to obtain a free market valuation or Buyer guide today. 

Owings, MD Homes for Sale - Samuel J Thomas, Holly Bennett and Genna Fleming, REALTORS® of The Milestone Team at EXIT 1 STOP REALTY
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