Pricing Update: It’s Still a Seller’s Market Out There

By ANTHONY MARGULEAS | Special to the Palisadian-Post

As we watch the housing market continue to climb, mortgage rates have started to rise by double-digit percentages. This rise in rates has many buyers leaving the arena. National home sales fell 2.7% last month, and applications for mortgages also saw a heavy decline—a 5% drop

As interest rates climb 3% year over year, homes are seeing more time on the market and less offers. In addition, many homeowners are second guessing selling due to the increase in time on the market, resulting in a continued lack of supply. This gives sellers the opportunity to continue higher pricing and keep the market in their favor.

This means home prices are still expected to increase throughout 2022. Zillow predicted that annual home price appreciation will “continue to accelerate through the fall.”

Though the increased mortgage rates will likely slow home price growth, every major real estate firm still expects home prices to continue to grow this year. Even on the brink of a recession, the real estate market is expected to remain strong. Inflation rates are slowing buyers, but not enough to drive a market crash or lower prices.

The largest difference between now and the crash of 2008 was that the real estate market had already experienced a significant downturn. There were signs prior to the fall of the market, and those are things we just aren’t seeing today. In fact, many are actually looking to the real estate market to lessen the impact of a possible recession in 2023.

Selling now is ideal. Even with the mortgage rates growing, prices continue to be strong and sellers can get the maximum amount. The market won’t be moving from a seller’s market to a buyer’s market anytime soon—regardless of everything else happening around it.

Anthony Marguleas is the founder of Amalfi Estates and has sold close to $2 billion in properties. He was selected by the Wall Street Journal as one of the top 40 agents in the country out of one million agents. If you are thinking of buying a home or selling your own, contact Marguleas at 310-293-9280 or anthony@amalfiestates.com.