Big slowdown in real estate, somehow prices are hanging on

The fact that prices are hanging on and even appreciating despite demand for homes being completely obliterated by the rising interest rates is almost unbelievable. It goes to show you how nefarious the housing shortage is.

There is a lot of fear in the market right now. Most buyers have a watch and wait mentality. They have to feel really good about a house to move forward with their purchase. Sellers must price correctly or their home will sit on the market. Interest rates have pulled back from their recent highs. If they continue to fall with the recession fears the market could kick back into gear unless we have widespread job loss. If they rise again our housing inventory will continue to increase and maybe then prices will actually correct.

Even though things feel really slow, there’s still enough demand and low enough supply to keep prices stable and in some cases climbing.