said Mr. Cerqua.
So what does this mean?
As we all know, the first four months of this year proposed an anomaly in sales growth; unsustainable with record low inventory and rapid price increases. Many sellers took this opportunity to cash in on their investments and as this trend caught on, the market began to flood with inventory. Buyers began to have more choice again and become a little more discerning with their purchases.
At the same time, the Fair Housing Plan was launched, and while we don't believe it has had much of an impact, it happened to coincide with an already stabilizing market which furthered the consumer uncertainty.
Now the important thing to note is that while we have seen a dip in prices since April, prices are still up almost 5% year-over-year!
Many sellers are feeling the pinch right now as they've already purchased and are watching their home sit a little longer than we're used to. This is causing some to sell their homes below their desired price in order to ensure they can meet their closing deadlines on their new purchases. Once these sellers vacate the market, we should see true stabilization with more reasonable increases in both sales and price, something we have not seen in quite some time.
At the end of the day, homes that are being priced correctly are still selling. Buyers are taking a little longer to make their decisions, but are still purchasing. A lucky group of sellers got to benefit from the outrageous growth in the beginning of this year, but real estate has always been a series of ebbs and flows, and it is time to get back to business as usual!
Have more questions? I'd be happy to help!