Nearly everything that was forecasted in our 1Q2021 market update has come to pass over the past
6 months. Values have continued to increase due to a surplus of buyers in the market compared to the number of homes available for sale. Multiple offers on listed homes have been a common occurrence.
No one has experienced a real estate market quite like the past 18 months; it’s been truly amazing to watch unfold. The increases in the north country region have been significant which begs the questions: How long can the upward trend in volume and values continue and will there be a market correction?
As the 3Q2021 sales volume chart indicates, there appears to be some softening already taking place and we expect that trend to continue in the months to come. It would be unreasonable to think that the percentage increases of the past few quarters are sustainable. Our region is not experiencing notable population growth and inflation is reducing consumers’ disposable income. The other factor that will likely impact the real estate market in the coming months is the expectation that interest rates may rise over the next few quarters.
It is probable the market will experience correction in the months to come. It is unlikely a correction will be nearly as dramatic as the increases we’ve experienced over the past 18-24 months. Barring any significant macroeconomic changes, we are forecasting a gradual stabilization of our local market.
We are still in the midst of a very hot and challenging market. Choosing the right real estate brokerage and agent IS VERY IMPORTANT. If you are in the market to buy or sell a home or another type of real estate, please contact us. Our goal is to build relationships and provide you with outstanding service.