I set out to write an article about only the Real Estate Market but so much else is happening and it is all interrelated.
Commencing with the start of summer we saw a slow down in the market for resales in many areas of our county. This is typical as the hot spring market usually starts in January, accelerates and this year became a very strong Seller’s market. Why? There is still a pent-up demand for housing, both sales and rentals, and low inventory. Many people with children of school age were frustrated at not being the accepted bid in many school districts. So, successful bidding entailed waiving home inspections, appraisals, offering free rent backs to sellers, as well as an above-list price, etc.
However, then came the slow-down, which only became more pronounced as summer ended and we moved into fall. After the heyday of the spring market buyers were now taking more time, fearing pulling the trigger on an offer, making lower bids, including home inspections, etc. all pointing to a buyer’s market. This is continuing today with many listings showing price reductions, coming back on the market, or leaving the market. But, there is still a high demand with a shortage of inventory.
This is all coupled, as we know, with higher interest rates, an inflationary economy, a war in Ukraine, overheated parts of the world, high gas prices (now softening), a threatened train strike which would raise havoc with delivery of goods, a shortage of employees to keep doors open, etc. For instance, a dollar store in the area was open only half a day, shelves were partially empty and there was one employee subbing from another store! And, can you believe Amazon is cutting back on their expansion plans!
Earlier I wrote about Escape to the Country. Well, now many people want to continue to work from home, more women are opening their own businesses so they can be with their children, more parents are home schooling and inflation is causing higher food prices. I predict more people will have home gardens next year.
The environment is still a hot topic. Coal prices are now rising which doesn’t lead to improving the quality of our world by not cutting emissions. This is one result of the Ukraine war as well as a global drought. I looked at the world on Google Maps the other day and saw massive amounts of brown especially in Africa and the western part of America!
I have always been a positive thinker but the way trends are going these days it is hard to always think positive!
On a lighter note, we still love Halloween so people will be buying costumes for their children, who will be Trick or Treating. I’m sure with less concern about Covid spreading that more people will be going to parties. So, let’s celebrate in the upcoming holidays and hope for a better future for all! To discuss more insights with me about real estate and your potential interests in buying or selling, give me a ring on 703-395-9214. I am Pat Sawhney, Licensed since 1975 and based at RE/MAX 100.