The real estate market is starting to correct itself. Between low inventory and rising interest rates, the market is starting to balance out.

Notice I said balance out. I did not say it will favor buyers or sellers because it is too early to tell which way the pendulum will swing.

Truth be told, I do not think it will swing fully to one side or the other but I do think we will see housing prices stabilize or slightly drop the rest of this year.

As for next year, NAR is predicting a 5% increase in housing prices so any price reductions that you see in the market right now could be short lived.

I do think we will see less competition for homes the rest of this year because soaring interest rates will squeeze out some potential buyers.

Despite rising interest rates, now is still a great time to buy because realistically speaking, the prices of homes will not drop in the coming years. In fact, housing prices will continue to go up but the price increases in won’t be what we have seen the past five years.

The past four months have seen a change in the market. Whether it will favor sellers or buyers remains to be seen. For now, if you can still afford to buy, you should.

In my opinion, I do not think we will see a big change in the market in terms of inventory, rates and prices. I do think however you will see less competition and an end to the insane bidding wars we have seen the past three years.