What Was Once A River Of Cash Has Turned Into A Trickle

Abstract

'Sellers are asking me if the cash buyers from California are still around, hoping they'll swoop in and offer to buy their home for more than the asking price-but that's not happening much anymore, and the cash buyers who are in the market are often offering below the asking price. I don't expect home values to plummet, but we do need to come down from the clouds at some point and sellers need to adjust their expectations to the new reality: There are more homes on the market, fewer buyers, and a higher chance that buyers can't pay the asking price because their monthly payments have shot up due to rising rates. ' The price adjustment she says will give buyers more options. Buyers are no longer as eager now that mortgage rates are up and there's buzz in the air about the slowing housing market. Local buyers-and even buyers coming from out of town-now have a chance to take their time and buy a home at asking price or even under asking price. 'There's definitely some buyer's remorse out there, too. With fixed mortgage rates now up nearly three-fold from their lows and variable rates rising rapidly this has substantially reduced the amount new home buyers can borrow and hence their capacity to pay.