This week it was revealed that inflation tied to the cost of consumer goods in the US rose 9.1% in June year-over-year, according to the Bureau of Labor Statistics. Yes, that's a lot and a large amount of data used to calculate this number are housing costs and rent prices. Housing prices were up 5.5% year-over-year according to national statistics.

If you are financing that house you want to buy, it will cost you more monthly based on your interest rate even with rates plateauing just a bit in the last few weeks. (That spurred a slight uptick in refinances.) A jumbo interest rate on average is around 5.8% this week. For investors or those purchasing a second home, that number is more than 6%. My husband and I just closed on an investment property at a 6.3% rate. A tough one to swallow, but as my colleague Brian Holt in Raleigh, NC shared with me-



Marry the House and Date the Rate!



You can always refinance down the road! It may take some time however, since the feds will most likely follow through with another rate hike this year. That said, houses are still selling according to the numbers below:


You are now probably asking - how does that translate in our world?


There is no doubt that the market has slowed down. Sellers who listed their homes at a high price to test the market, or what we like to call a "make me move number" have made the decisions to withdraw those properties from the market since they aren't selling quickly, or over asking. There are more price reductions than just a few months ago and the inventory is slightly higher, albeit still historically low. 


The biggest factor I have noticed this year comes from my own observation (we were in Europe for two weeks) - people are vacationing!!


Potential buyers and sellers aren't sitting at home waiting for their MLS alerts in the heat of the summer; they are on the beach, traveling abroad, or at National Parks spending their money on trips and not just housing. People have other healthy distractions, and houses are not top of mind, because we can now venture out of them and live our lives. In my opinion, the change in the market I am noticing doesn't seem drastic, it seems reminiscent of 2019. Prices are not plummeting at all - all that needs to be tempered are the seller's expectations, since the days of 20 bids on a property seem over for now.

Let's end with a little guessing game! While doing my research for today's blog, I came across a great article on the MOST expensive housing market in the country. It's not where you would think. Do you know which city it is? Send me an email with your guess! I promise I will respond!


Have a great week!!!