Local real estate experts say market leveling down, mix of interest rates and inventory on rise

DELMARVA – “The sure sign of the change was seeing price reductions instead of price increases and seeing opening houses,” Remax Advantage Realty Associate Broker Pam Price said.

What was once considered a hot sellers market on Delmarva is now leveling out and experts say a big factor is changing interest rates. “Those rate changes make real differences to buyers and what they can participate in,” The Payne Team Lead for Coldwell Banker Realty Rob Payne said.

“Now if you were approved at $300,000 four months ago then you’re not going to be approved for that same amount today,” Price said.

Experts say for the first half of the year it was a strong sellers market, meaning there was not much inventory and lots of buyers. Yet, that’s changing fast.

Housing experts say historic inflation levels are also changing buyer’s power. “Previously those renovations may have cost $10,000 but now they’re going to cost you $12,000-$15,000 then obviously those are factors you have to factor in,” Payne said.

“Most households are seeing a $500 increase in their spending at minimum,” Price said.

As for sellers, local real estate agent Rob Payne says as the year progresses he anticipates seeing more listing prices decrease.

If priced incorrectly, he says you can expect that for sale sign to sit in your yard even longer. “If you try to overprice something, it’ll sit there. Buyers know what’s going on,” Payne said.

“So that’s why its really important to have your real estate professional do CMA’S and listen to what the market data says.”

Those we spoke with advise potential homeowners not to fear as these changes aren’t all bad. We’re told the market actually seems to be heading towards a direction of pre-pandemic traffic.

“We’re just seeing finally that there’s less people in the pool of offers so they actually have a chance,”

Now housing experts tell 47ABC not to worry as they expect it will still be a healthy market — but they do anticipate more interest rate increases going into the final two quarters of the year.

Experts do want to remind you that there is still the option available to rent but it will now cost on average $300-$400 more.