ARE HOME PRICES FALLING? The short answer is yes…. here’s what’s happening. The real estate market is in the beginning stages of a shift. What does that mean? Our market is “cooling off” and shifting from an extremely hot seller’s market to more of a normal seller’s market. The “name your price” seller’s market is going to be a thing of past very soon.
This was started by the rising interest rates. Once the Federal Reserve Board raised rates it, literally, eliminated a large pool of the buyers. Many buyers can no longer afford the home they were after. The remaining buyers are mixed. We still have cash buyers who are not affected by this change. We have buyers who can still afford a home even with the increased interest rates. Lastly, we have buyers that can still afford to buy a home but will need to scale down in size and price in order to buy.
Sellers Have Become Accustomed
Home sellers have become accustomed to pricing their home just above the last highest sale in their neighborhood and getting offers at this price and in many cases getting massive overbids by anxious buyers. This is what has started to change or shift. The seller will not be able to “name their price” anymore.
Home prices are falling. This is changing right now in front of our eyes and as a result we are seeing prices come down. Home prices are falling to more reasonable prices. The sellers are going to have to accept the fact that this shift in buyers’ behavior will not tolerate the crazy high overbids and exaggerated prices. Instead, the sellers will need to accept the fact that getting fair market price for their home is the norm.
Change In Buyer Behavior
This change in behavior is why we are seeing home prices fall throughout Huntington Beach and Orange County, CA. For more information on our local market you can contact Cal Direct Realty and real estate agent Zeb Plante.