Market Conditions Heading into the 3rd Quarter

?‍♂️ What are we seeing in the real estate markets as we're about a week into the Fed raising rates, interest rates continuing to rise❓️
It's Mark Gellman, eXp Realty, St Louis MO
?It continues to be an interesting time - but there's still buyers and sellers transacting real estate and it will continue ?.
? There's weakness in inventory, and there's still strong buyer demand.
? It may look a little bit different, but still a great opportunity to buy and sell.
? Last week, we discussed that we're seeing builders doing something that we have not seen in a while, which was concessions.
? Some local builders were disputing that this meant anything, yet this week, we're seeing local St. Louis builders offering 25% off, upgrades, and other enticing opportunities.
? The one big thing we're seeing that we have not seen in a while is the change in the investor market.
? As we've discussed, over 3000 homes last year were bought by investors, and many of those were large institutional investors.
? The biggest change that happened over the last few weeks is that institutional investors are on pause right now ?
? It doesn't mean that institutional investors are done buying, they're just reevaluating their "buy box", their tolerable cap rates, so that's very interesting ?‍♂️
? Similar to what I mentioned about the builders, this is another interesting facet happening in the market right now.
? Institutional investors are very savvy. They have the foresight to see what they believe is going to happen in the market ?. Right now, most institutional investors, are pausing purchases to re-evaluate the markets. They're certainly going to be buying again, but we may not see them buying at the crazy, crazy high prices they were paying. It's something we're going to have to keep an eye on ?
If you have any questions about buying, selling, investing, don't hesitate to reach out.
? Remember, sellers, 1.5 months to still sell at optimal prices ?. Then we don't know what's going to happen in the fourth quarter ❓️
? Buyers, interest rates are continuing to rise. If they rise and you sit out of the market, not sure there's not much you can do, because your buying power goes down?. If they happen to decrease and you've bought, refinance immediately❗️
Thank you so much and have an amazing day.

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