DAYTON — The housing market has seen a significant surge during the pandemic, but now it’s beginning to slow down.
News Center 7′s James Rider explains how other markets could be impacted and why prices locally are not likely to go down,
There’s a lot of factors that play in the housing market but in some parts of the country, the biggest factor is that home prices grew at a much steeper price than income which should lead to things leveling off.
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Rhonda Chambal, President of Irongate Realtors, said, “I actually have a brother-in-law who is an agent in Phoenix. He calls me and tells me what the trends are there. It seems like their market in the past month has hit a screeching halt. But of course, their market has a much higher appreciation that what we see here.”
According to analysis from Core Logic, two-thirds of the housing markets across the country are considered overvalued. However, in Dayton, it’s considered to be at a normal market given factors like average salary.
“Right now, it’s still a strong sellers’ market. We’re still seeing multiple offers usually within the first 48 hours. It’s usually 2 to 3 offers whereas last spring 10 offers would be a normal occurrence,” Chambal said.
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One of the factors that has cooled off the real estate market is that mortgage rates have gone up significantly. For some it went from 3 percent to five percent.
“But our inventory is still really low. That means we still have an imbalanced market which means it’s a sellers’ market more than a buyers’ market,” Chambal said.
So, while the market may be cooling, it’s not likely to impact the prices of homes locally.
Experts project markets in Arizona, Oregon, and Connecticut among others to start to see a decline, but in the Miami Valley, most experts believe things will stay pretty much the same.
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