June pending home sales fell 8.6% from the previous month. According to the National Association of Real Estate Agents.. This is the latest sign of the enthusiastic housing market we learned during the pandemic. It’s finally cold..
So how about buying and selling a house now?
“The market was crazy and the homes were listed and contracted within 24 hours,” said Josh Landen, who began looking for homes in the suburbs of Tampa, Florida in early March.
So when another buyer canceled the purchase of a new home under construction, Landen scooped it up. He signed a contract in April.
However, while waiting for the construction to complete, he noticed a change in the construction company’s promotional email. “Incentives were increasing and prices were falling.”
He talked to the company to cancel the first contract and make a new transaction available. “Frankly, I got a better home in a better parcel with less money,” he said.
Lawrence Yun, chief economist at the National Association of Real Estate Agents, said the housing market has cooled significantly as mortgage rates have risen.
“I feel like someone turned off the lights,” he said.
At a higher rate that sets prices for many potential buyers, he said they can afford to be tougher, still on the market. Some sellers like Mark Abermoske weren’t ready for that. He sold his home outside Madison, Wisconsin in April.
“I was told that I would basically go public on Thursday, open house on Saturday, receive an offer on Monday, and sell on Tuesday,” he said.
Three months later, several transactions failed and the house was finally contracted.
Mickey Maynard also feels the whiplash. She listed her mother’s condo in Ann Arbor, Michigan in early May. “The market we were expecting to compete with literally disappeared in a week.”
The condo was still on the market and Maynard had to lower prices and improve the property to attract buyers — a concession she didn’t expect just a few months ago.
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