That is the burning question on everyone’s mind: Realtors, lenders, appraisers, home buyers and home sellers… EVERYONE wants to know!
According to Michael Theo, President & CEO, Wisconsin REALTORS® Association (WRA):
“Inventories are at historically low levels, and affordability has been sliding due to strong price pressure and rising mortgage rates. With both the supply side and the demand side of the housing market weakening, it’s not surprising home sales have fallen statewide.”
Couple that with what Dave Clark, Marquette University Economist and WRA Consultant says:
“The Fed has aggressively tightened credit conditions to get inflation under control, and there are signs of slow progress. The October inflation rate fell to 7.7%, which is the lowest level since January 2022. It is important to remember the cost of housing is a large determinant of the Consumer Price Index, which is used to measure inflation. Indeed, shelter accounts for about a third of consumer spending, and hence the rapid increases in home prices we experienced have fueled inflation. A cooling housing market will help to reduce inflation pressure.”
This does NOT mean housing prices are going to crash and a million foreclosures will start happening. Home buyers will still continue to buy houses even with “high” mortgage rates and sellers will continue to sell their houses. We may just not have 20 offers on a single home anymore, which will be a WONDERFUL thing. It’d be great to go to a more stable/equal housing market.