Was last year’s end-of-summer pickup an abnormality that was driven by ultra-low rates and prices?
Or could the deep demand cause the market to keep cranking straight through, in spite of both rates and prices being much higher?
The next 4-6 weeks should be fairly predictable – hot, for those sellers who are priced within reason.
Then what?
Regarding your comment about the buyer pool…
I think you hit on something important. The buyer pool is deep, but it is definitely stratified. The strong hands were buying last year and smoking the competition at the beginning of this year. That left the rest of the buyers scrambling. We will quickly run out of desperate buyers that are willing to pay crazy prices as rates creep up. These desperados are the most sensitive to rate hikes. Otherwise, they wouldn’t be paying the crazy prices in the first place.
Yea would not surprise me to see the market in general just kind of stagnate here for a while.
Personally I don’t foresee a big movement in price in either direction for a little while, I think we kind of hit the wall, buyers have kind of reached their limit and most of the sellers are just not that desperate.
What the heck would they do with the money anyway (put it in the bank and live off the interest HA!!), may as well wait and see what happens next year.
The 10 year treasury is moving much higher after today’s fed meeting so expect to see mortgage rates continue to climb higher. Maybe we’ll get a short term panic to buy anything just to lock a rate or maybe we reached the limit. Hard to say.