A shifting market
2020 and 2021 presented a very unique and dynamic market for professionals and consumers alike. As some businesses suffered such as the service and entertainment industries due to government shutdowns, others thrived such as logistics, retail, home improvement and manufacturing. These industries also had a tendency to maintain a low turn over, increased demand for these skill sets that couldn’t be met overnight, lead to unprecedented overtime. Couple this with the fact that the Federal Reserve made the decision to reduce it’s interest rate to the banks to a literal zero, and you have the perfect recipe for a market saturated with buyers. But it’s not just the sellers cashing out. Lenders and Appraisers alike have capitalized on the increased demand by making adjustments in essential services such as loan origination and appraisal reporting.
Fast forward to the end of 2021 and what we are witnessing is a shift, from a seller to a buyer market. This is due to a couple of factors such as buyer fatigue setting in, rising interest rates, synthetically inflated sales prices and a market winding down for the holidays. Me among other professionals are noticing the multiple offer situations beginning to dwindle. I’ve even heard of sightings of real estates all elusive mythical creature being spotted, the coveted seller paid buyer closing cost.
Isaac J. Olmos
Olmos Real Estate Group powered by MAREG