One agent did the math, only on single-family homes, for 2022 so far, and found a 15% price drop across the State. While that is macro data, involving many different submarkets, it clearly indicates a change from the pandemic years of 2020 and 2021. If you are a buyer, that is good news, because it may mitigate the rise in interest rates. Your monthly payment, which would be going up as interest rates increase, will be lessened if you borrow less, to cover a lower purchase price. '
If you are a seller, you may be in luck.
If you have lived in your current home a long time, and have a good deal of equity, you may be buying a new home with cash. And we all know cash is king! If you are bidding into a declining market, and do not have to worry about mortgage rates, your cash may enable you to make a better purchase. Of course, if you are not buying another home, you won't get the benefit on the other end, but you may not need that cash. You should be as flexible as possible, to accommodate buyers who now may have more choices.
real estate is ultimately a cyclical industry.
Try to think of a sale, or a purchase, as a lifestyle decision. Compare it to a vacation, a car, or a wedding: You are making memories, and living your lives to the fullest. Depriving yourself of what you want to do, so that you can wait for rates to decline or prices to go up, may not make sense. We have all learned in the past three years that life is uncertain. So make the move you can afford to make, and enjoy that new place now. And, as the T-shirt slogan advises for uncertain futures, eat dessert first!
