Hi, this is Tom Heath with the Mortgage Guidance Group at Nova Home Loans, and this is our weekly installment of mortgage and real estate related matters. This week’s topic is really about setting expectations. I’ve had multiple real estate agents and a few consumers calling me about the state of the market, what’s been happening, and what can we continue to expect.
The volatility is not going away. The interest rates have moved up significantly, and they’re still moving in that direction. We know there’s all kinds of uncertainty about the economy, about the job market. There’s all kinds of things that are creating tension and doubt in buyer’s and seller’s minds. The fact that it happened so fast has made it hard for people to process. And as I’m describing it to different individuals, I’m explaining it kind of like jumping into a very cold lake. You jump in and your body just goes into shock for a moment and you can’t do anything except try to stabilize your breath.
And then once you get comfortable, your body becomes more acclimated to the temperature of the lake and you can start to swim or do your activities. And then, ironically, when you get out, you’re cold again and you want to go back into the water. So it’s about getting the body used to that temperature. And I think that’s what’s happening in part with the hesitation we see in the market. People are just shell shocked at how cold the water was when they jumped in. And their body is adjusting. And at the moment, they’re just trying to catch their breath. But once they do, and once they get comfortable with it and they recognize this is the normal, I do think we’re going to start seeing the transactions happening again. Buyers and sellers in a balanced market, negotiating prices, and it’s going to take a little bit of time for us to get there. The best we can do is counsel our clients and help them make good decisions with the information we have on hand.
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