On my way into the office this morning, earlier than usual, I heard the Morning Economic Report with Anirban Basu on WYPR.
Yes, I was about 5 minutes away from the office at 7:33 AM. The
report normally focuses on a small item of local economic
Today’s report has been something of consolation to those of us who
have decided to wait out the red-hot real estate market in the
region. Essentially, Mr. Basu was referring to the decrease in
demand for existing home sales in markets near Baltimore and in the
East. Specifically, he referred to an increase in price
reductions for existing homes in Northern Virginia, and he mentioned
how the available stock of homes has quintupled in recent months in
Rhode Island. Also, he mentioned that the National Assocation of Realtors has predicted a 3.5% decline in existing home sales for next year.
Of course, rising interest rates–as the Fed has committed to
continuing the gradual increase in interest rates to dampen
inflation–will help the cost of borrowing will now become
higher. Higher energy costs will also have an impact, as the
wallets of consumers are pinched further.
So, later than some have predicted,
the housing market will cool off a bit. I think it might be time
for me to revisit my home buying scenario in the coming months.