How quickly things can change and the real estate market is no exception! The last 2 years saw record sales on the Monterey Peninsula and throughout California. Many desperate buyers were willing to do whatever they could to have their deal accepted. Offers over asking, contingencies waived and other creative incentives were deployed to win the deal. Now, the market has changed and the question is.......what happened to all those buyers?
1. Interest rates and home prices have risen too high for some buyers to be able to afford what they need/want. 2. Some buyers are fearful of a recession and the possibility of losing their job are holding tight 3. Home owners with a super-low mortgage interest rate don't want to lose their advantage. Buying now at a higher rate feels painful. 4. Employees with a potential bonus may be waiting for their cash so they can buy in 2023 and reduce the size of their mortgage. 5. Cautious buyers may wish to 'wait and see' if /how much home prices come down before stepping in. 6. Stock holders may be waiting because the markets are sharply down over the past 12 months and are waiting for a rebound. 7. Crypto or other investment losses may cause buyers to hold on to cash reserves, or they simply don't qualify anymore for loans. 8. Owners may do not wish to take a large capital gain in 2022. Tax season is coming.... 9. The housing supply is still very low and buyers can't find the home they are looking for 10. Flippers hardly ever buy when markets indicate a downward trend. The vast majority of these 'lost' buyers will be back. They are simply out of the markets temporarily during the "GREAT REBALANCING OF 2022".