JASON’S “REAL TALK”

The real estate market remains very strong, and this seller market continues to chug along. The price point dictates the reality for buyers and sellers in this market. The usual impacts of larger buyer pools in the lower price points are exacerbated during this current market climate. The story has started to change and a pattern has developed. While the market remains strong and is still a seller’s market, the residential market has developed a cooling pattern. This pattern started in April with the peak having been reached in March. Every month since March has seen a slight decline in the absorption rate. We believe this is a pattern of normalization that is being caused by affordability and buyer limitations. We mentioned this trend starting to emerge in previous newsletters, but we can now confirm the trend. Interest rates and changing demographics are still driving demand, but a return to normalization should continue over the next few months. If this trend continues, we could see a return to a normal market by mid to late Q1 2022.