Anyone seeing a cooling of the market?

Question

I've seen some youtube videos where seasoned investors are now seeing more inventory and a slowing of surging prices. I have two markets, Northwest Indiana and the Southeast side of Chicago. I'm seeing a slight hint of that in Chicago, but not in Northwest Indiana. What say you?

Adrien C. · Answer

My brokerage is still seeing stupid offers on houses in NW Indiana. Appraisers are starting to fight back though. 2 months ago it seemed like everything appraised. Now they are basically giving list price and none of the stupid way over offers. There's only 505 houses on the market in Lake county which has a population of over 400K. Drive around Crown Point, Winfield, south Dyer, Cedar Lake, and St John and the amount of new construction is crazy. As long as rates stay low and inventory stays low, we'll be in this stupidness for some time.

Michael Dumler · Answer

@Dominic Kosteris Atlanta market is still hot! Maybe come 2022 will see some leveling out in home prices with the forbearance and eviction moratorium coming to an end. Demand still at an all high here. Also, keep an eye on interest rates, we may be seeing an increase to tamper down inflation.

Dominic Kosteris · Answer

Okay, had to bump this. I am noticing more inventory in my main market of the Southeast side of Chicago. A 3 bed 2 bath was listed for 119k and there is a renter who has a voucher that produced 1,500 a month. I shot an offer for 89k and was countered 105k. I'm gonna wait till after the 4th and counter the counter with 93k. Wish me luck.

Jonathan Klemm · Answer

@Dominic Kosteris - Properties are still moving quickly on the North and Northwest side, but I am not extremely familiar with NW Indiana possibly @Eudith Vacio might know since she does some investing in that area.

My personal opinion is we will see a slight slow down or a level off now that things are starting to open up.  Everyone who has been isolated for the last 1.5 years will be going out and traveling more than they normally would have been, which leaves less time to move and buy houses.  Also, the money they were saving previously for down payments might be going toward vacations.

Marcus Auerbach · Answer

Milwaukee metro has not seen a cooling off on the demand side, but what we do see is more homes hitting the market per week. This spreads the buyer demand over more listings. A lot of my sellers were on hold either due to covid or due to concerns about how to find a new home. Both are easing now, leading to more listings.

"Cooling off" is not the right term, we went from going 140mph to 120mph....

Jason Albasha · Answer

Mortgage applications still where they were at last month.

I'm shopping for a house and just offered $25k over list... outbid.

Bjorn Ahlblad · Answer

I am 2 hours SW of Seattle ain't nutten' cooling off here!

Peter Falk · Answer

I wish we would start swinging back to a more balanced market, but in the Madison, WI area it's still very low inventory and multiple offers typical (pushing prices higher still-did a recent appraisal where a comp sold for $100k over what looked like a reasonable list price).  Low interest rates help, but still an extreme sellers market here.

Cody Neumann · Answer

@Dominic Kosteris

I’m seeing a slight slowdown in Wisconsin lately which I assume is because of the 4th of July. We haven’t been seeing as many offers on houses right away and they are sitting a little longer.

Ryan Vertucci · Answer

The inventory for home sales is rising rapidly in our area (still low but rising more than it has been over the year so far). There are currently 20 homes (rental rates are up almost 30% in our market of 2019) available for rent and 730 available for sale with the inventory of new homes for sale rising. Half of these homes have been on market for more than 30 days, there have been many with price cuts, and DOM is going up, however it is still hot. My buddy who does mortgages says that mortgage applications have declined to 2019 levels within the last 60 days and it takes 3 to 6 months to see this correspond with the housing market so we may see some short term relief heading into fall. Interest rates will also rise within the next 6 to 12 months and we will start to see waves of foreclosures,  evictions, and new home building (as building materials costs are stabilizing) driving up supply as we go into winter and spring 2022. I am thinking a year from now the ball might be back in our court The market may not totally crash but will definitely at least level out.

Anyone seeing a cooling of the market?

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