Market of the Moment - 8/12/2022

[Alan Walker]

Our inventory continues to grow. I wouldn't be surprised if we hit 1100 by September. The question I get asked a lot is "What's normal?" and I think that's the wrong question. I think the right question is "where's it trending?".

Prices are trending downwards with median home price at 650,000 in May and 600,000 in July. Will this continue? Gurl, I ain't got no crystal ball!

What does it mean if you are buying for yourself? Should you wait and see if prices continue to drop? Maybe. But what if rates keep going up? The people that bought at 500,000 in January are paying less per month than the people who bought at 450,000 in July. Find the right house that you want to be in for 5-7 years. That's what's important.
Marry the house, date the rate.

What about for investors? Deals are already happening on the MLS. I'm seeing more seller-finance deals broadcast on the MLS every week. Good long-term investors haven't been betting on appreciation. They are betting on cash flow. In that sense, nothing has changed. What I can say from my own personal investing experience is that if you are doing a refi to get out of hard money, be VERY conservative with your estimated appraisal value.

Want some great news? People still need places to live! Whether its for yourself or for some renters. Don't lose yourself in the noise. Real estate has value because it serves a purpose.

That purpose hasn't changed. Stay focused on that, and you can weather the storm.