Right now we are in a transition period. After having a robust period in 2012/2013 and part of 2014 things had slowed down. This spring we saw things happen quickly. Most all sellers came out of the gate strong in February with well overpriced homes. Some buyers fell for it and took the bait.
What then happened is more inventory came on the market in March and April and tried to match the relatively few higher priced sales. Unless their homes were exceptional or showed very well, we are now seeing much longer market times and are now witnessing price adjustments. However those price adjustments are still not bringing the homes to actual market value. Seller entitlement still runs deep. Homes that are priced fairly are still selling.
I cannot say we are really in a bubble but don’t buy a home if you don’t want to buy a home. I do think the market will adjust some but not in a major manner. More of a manner that if you take fair market solds from the last year spring, add a couple percent to them, that should be the price, not double digit percentages.
