What’s new in the real estate market happened in June 2023?
The trend of selling for higher prices than the initial asking price is giving way to a more cooperative real estate bargaining process, in which buyers can bargain and offer a lower price than the initial asking price.
Soaring interest rates have reduced sales, but the number of homes listed for sale has risen marginally. Thus, the number of properties for sale is still significantly below the historical average. At the same time, the number of buyers in the market also decreased. A sign that the market is getting back to normal is the increase in the number of property sales at the asking price. This trend has gained momentum, and now such sales account for 7 out of 10 transactions.
The average time it takes to sell has also increased. Buyers are now not rushing as before, they make informed decisions. During the excitement, some buyers were afraid to inspect the property in case they didn’t get the deal, now all purchases include a thorough inspection.
Despite the rise in interest rates and the decline in sales, real estate prices have not changed significantly. On average, the decline in prices over the past year, starting from the April 2022 peak, is only 5%. Therefore, we can say that most of the price correction is over. The upcoming months will see the real estate sector continue to settle down in terms of values, owing to the absence of sufficient available property to restore the equilibrium of the market.
Currently, it is difficult to say what will happen to real estate prices in the near future. Some economists believe that as soon as the growth of interest on mortgages stops, buyers will begin to actively look for houses and prices will go up again. Others believe that the growth of interest on mortgages will continue until the end of the year, which will lead to lower prices.
In any case, I am always prepared to provide you with qualified services in the sale or purchase of residential or commercial real estate.
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