Derry's Condo Headshot

Derry's Condo Headshot

Thursday, July 21, 2022

The Gap: Recalibrating hasn't happened yet

The conversation I am having the most these days is, if you're a buyer, GO!! Go Now!! Be aggressive now!! The reason being is two things. Interest rates have dipped, mortgage applications are down. It almost feels like that moment in soccer when the ball gets behind the defense, and your offense is sprinting 30 yards towards the goalie for a free shot. The level of excitement, anticipation and ease seems too obvious to deny. 

This feels like some level of normalcy that we haven't had in forever. By that I mean that there appears to be a summer slow down right now. Almost like everyone has just decided that interest rates are higher than what they want. People think the market is either still too crazy or that it is absolutely going to crash. If sellers are forced to sell in order to pay estate taxes or they're in a 1031 exchange or some external variable going on, they're in a bit of a tough spot because the winds have completely changed. That being said, I don't think it's a very long window. Whether everyone has decided to take the summer off or housing has become a low priority because of competing offers and higher interest rates, we have found a lull. 

Just yesterday I called a client and said to pay attention to the news and the stock market. To me, this is an ideal scenario. The mentality, behavior and news is very cautious and even doom and gloom in some cases. However, the stock market seems to be fighting through it and has been fighting to get back to the green. We're definitely positive for the week. It won't take long for us to be positive for the month. 

Navigating the market is always a challenge because it's always nice to have the opportunity to analyze the data. But if you're busy analyzing the data, you're always looking in the rear view mirror. That's why I like to include the general attitude of the market. 

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