[quote=The-Shoveler]Inventory is only going up because prices have gone up. If prices retreat I think the market will go back to mostly distressed sales again (for the most part).
I also think the recent rise in interest rates are having a much bigger effect than most realtors want to tell you.[/quote]
I’ll stick my neck out and say that inventory is going up because houses are not selling as fast as they were. The rise in prices was not enough to get people in trouble to sell their house.
It gets to a point that people just cannot wait any longer for various reasons, including death, divorce, job transfer, lack of income, loss of tenant etc. Those who wanted just a little bit more than where the market was a month or so ago may have missed the boat.
There was no reason for houses to go up, they were not cheap, but because interest rates were so low, people only cared about their monthly payment, not how much they were paying.
there are always people that must sell for one reason or another. They do not have the luxury of listening to propaganda from the NAR about how much better the market is going to be in 12 months.
Whatever many (clueless) agents tell anybody is just wishful thinking and poppycock that has been beat into them. The recent rise in rates has created a shock to the system. I’m willing to bet that contracts signed in July will be a disappointing number, and then the industry will put a spin on it
