As a Realtor I hate to see the roller coaster markets. Wouldn’t it be nice if real
estate grew at an even pace between 3% and 6%? But what we seem to see is
inflated markets until a “bubble burst”. The last couple years has seen
“hyperinflation” in most residential markets that we all knew was not sustainable.
All real estate markets are local so this may apply to most but not all North
American markets. Latest statistics in Windsor Ontario are that the market
peaked in February 2022. Average sales price has dropped nearly 25% since a rate
of negative 5% per month.
Not much different in the SE Michigan market. Prices peaked in May of 2022.
Average sales price dropped 6% in two months or a rate of negative 3% per
month.
Hard to predict the future but rising interest rates, less buyers and more
inventory including new residential housing starts have triggered the most basic
law of economics, demand and supply ratios.
If you are selling, don’t get caught chasing a falling market. Normally 3%
adjustments will catch the top of the market each 30 days. Today that 3%
reduction might best be made each 2 weeks.
Tom Goebel