June Update

Higher inventory will eventually result in growing pressure on home prices. And though its still relatively early, two things are clear: First, home prices are still rising. They haven’t collapsed, and are not expected to in the near future. But second, sellers are losing some of their advantage and are having to reduce what they’re asking. That doesn’t mean prices are dropping, but it does suggest price growth will slow down and a more balanced market may return.

Don’t forget that the shifting market is by design. The Fed raised interest rates by the most in over 20 years in an effort to cool off demand, and it’s working.

As a result, I know it’s tempting to read about rising interest rates and inflation as the beginning of the sky falling. But it’s also worth noting that a shift is not a collapse, and while the competitive landscape is changing, the data shows that prices are still rising

By the way, we broke another median sales price record for the month of May. Single family homes, condos, townhomes, and even high rises all grew to price levels never seen before in the Valley. it’s going to be a hot and interesting summer!