As the demand from home-buyers continued to go up, so did the prices, so much so that even though pending sales are 20% right now compared to this time last year, the pending sales for September fell by 2.2% and by 1.1% in October. A pending sale means a contract has been signed but a sale is not yet closed.
Why is this happening during one of the hottest booms the real estate market has seen in years? The prices are finally hitting the point of un affordability. So far, the record low mortgage rates were fueling the higher prices and people were willing to pay above asking due to the savings on the mortgage interests. The lack of inventory also caused a spike in prices, however, slowly but surely, buyers are backing out and cooling off when they see how quickly prices are going up.
What does this mean? It means the market is still in a boom, however, unless prices start to stabilize demand may continue to drop, simply because people can’t afford it anymore.
Sellers now have two options, 2 either wait for the buyers who can afford it, or slightly lower the currently beefed up prices in order to sell, it also depends on if they are planning to buy a bigger home or if they are selling an investment property. An agent like Amin Vali and the professionals at Amin Vali Real Estate Investment can provide the resources and necessary information to make the right decision for you.
We are seeing the beginnings of a plateau which could signal that prices will stabilize, or prices will continue to go, until demand drops enough to match the level of current supply. This would leave the market at a nice equilibrium, however, it will be short lived, since people still need to buy homes and inventory is still in very short supply.
Either way, the real estate market will continue to experience a boom as long as the mortgage rates are low, the pandemic drives people outside of the city centers, and there is a lack of real estate inventory.
Civil Engineer, MBA, Real Estate Agent
Amin Vali Real Estate Inc.
Persian Realtor,Persian Real Estate,
Cell phone: +1 (949)220-1000
Phone : +1(310)300-0011
Web : http://www.aminvali.com
E-mail : email@example.com
Realtor in Zutila Inc.