Here we are… post-Labor Day and ready to rock and roll in our real estate world. Buyers, sellers, agents and mortgage brokers anxiously anticipating how this next stretch of the real estate selling/buying season will play out.
We have seen an interesting dynamic to the market in the last few months that we have not seen in a while- homes that don’t sell in a nano second and actually sit on the market a bit. Don’t get too excited as the multiple bid situation is still very much happening for sure but it has not been the only course of action to be seen. It is just that some inventory has been overpriced to an extent that the market has pushed back.
Top economist David Rosenburg has stated in interviews in the past week that he feels the reinstatement of student loan payments, the end of benefits from the stimulus checks along with the 11 interest rate hikes and the increase in national credit card debt will impact consumer spending and thus influence the inevitableness of a recession.
Will a recession impact our local real estate world? Ha..we aren’t paid the big bucks to make those guesses but we tend to agree with the following statement…
“A recession typically leads to a reduced level of real estate activity, as fewer people are willing or able to buy,” says Greg McBride, CFA, Bankrate’s chief financial analyst. “But this won’t necessarily lead to lower home prices if the supply of homes available for sale is very low.”
The take away for us is that our local residential real estate market is not going to change a whole lot based on the lack of inventory and the profile of the typical buyer in our market. Plus we don’t anticipate that the low inventory issue is going to change any time in the near future.