Has the market shifted in favor of buyers?
The stated goal of the U.S. Federal Reserve is to fight inflation by raising interest rates to reduce consumer demand (and to increase unemployment). As a result, mortgage interest rates have risen over 3 points since the beginning of 2022. Low mortgage interest rates and low housing inventory in the first half of 2022 resulted in a market strongly in favor of sellers.
In many other regions of the country, the real estate market has shifted strongly to a buyer’s market. Is this the case in our market?
Our observations:
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Buyers are becoming more selective about location, property condition, and pricing.
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Buyers are increasingly anxious about the economy, but are still proceeding with offers.
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More buyers are including inspection and mortgage contingencies in offers.
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However, multiple offers above asking price and waived contingencies ARE still occurring, especially in desirable locations. An Arlington single family listing received 14 offers this month.