The Housing Affordability Crisis is here

The Affordability Crisis is here. Thus, the market is beginning to normalize to pre-pandemic levels as the fed pulls liquidity out of the system.

My prediction is:

• Residential housing inventory will continue to increase.

• Home appreciation will slow to a normalized range (3-4% appreciation) between now and the end of the year due to increased competition among sellers. Next year it's possible we could see prices decrease a little.

• Demand will continue to fall due to the rising cost of capital, fear of economic turbulence, and job loss.

Ultimately, the strength of the market is highly influenced by what the Federal Reserve decides to do with interest rates.

For those investors who are well prepared and capitalized for a larger shift, there will be many opportunities in the market that lies ahead.

For real estate agents, it's all about creating new habits to match the market. What worked last year may not work this year. Adjust your business plan, communications, and activities for the new market conditions.

For buyers and sellers, it's more important than ever to work with a professional who is up to date on what is going on as the market is changing quickly. You don't want to hire the agent who simply tells you the highest price (that's called "buying" the listing), you want the one with the most experience, best track record in TODAY's market, and the one who will work the smartest for you and your family.

FYI - keep an eye out on pending sales as the leading indicator, down 35.3% year-over-year (which was the hottest year ever). Pending sales are also down 12.6% month-over-month. Month's supply of inventory is also up 79.7% year-over-year.

Data Source: Northeast Florida Association of Realtors Market Statistics

Let's go! #gametime #opportunity #movewithmomentum