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Over the past six months, interest rates have been steadily increasing. While rates averaged around 3.05 percent towards the end of 2021, they have since increased to an average of 5 percent as of the first week of August. Even though there are still a high number of potential buyers on the market, the higher interest rates have allowed the market to stabilize somewhat. Keep in mind that home values rose by upwards of 20 percent over the course of 2021, which means that buying a home today may be somewhat more expensive than it was just one year ago. While home prices may have been lower one year ago, the increased buyer competition in the market made it difficult for many buyers to make bids that were high enough to satisfy the seller. Once demand decreases among buyers, home inventory will increase, which means that buyers may find it easier to purchase a home without needing to make an offer that's far higher than the listing price. In general, buyers should expect demand to still be relatively high and housing inventory to be relatively low. However, both metrics have improved in recent months, which means that the market shouldn't be as intense as it was in 2021. Home prices are also expected to rise this year but shouldn't come close to the 20 percent increase that occurred last year. If you're looking to sell your home but worry that the market may not be favorable for doing so, the truth is that the housing market still favors sellers. You probably won't sell your home as quickly as last year or early 2022, and there won't be a bidding war; nevertheless, your home will probably sell close to your listing price. If you want to make sure that your home is sold without much delay, perform any necessary upgrades and repairs before placing your home on the market and don't overprice your home. While it's unlikely that the housing market will shift completely to favoring buyers, it's looking like the market will be more balanced over the next year or so. I believe we are moving toward a balanced and healthier market… and that is great for buyers and sellers alike! (From California Association of Realtors and other sources.) Are We In A Seller's Market, A Buyer's Market Or A Balanced Market? 12 | LIFE IN SOLERA | SEPTEMBER 2022 | By Diana Mangan Realtor and Resident