Is the Hot Real Estate Market Cooling Down?

Weve been living in the high flying world of a hot residential real estate market for the last three years. Is it slowing down? What does it mean for buyers and sellers if it is? Do buyers and sellers need to change their strategy?

Is the Market Slowing?

I live in Virginia in what is sometimes referred to as the greater Washington, D.C. area. Things have been changing in the last few weeks. Houses which were selling in a few days to a couple of weeks are now taking a month or two to sell. There are more houses which are expiring or being withdrawn from the market without selling at the asking price. Im also beginning to see some modest price reductions. The market is still strong, but there are abundant signs that it is moderating.

There have been bits and pieces in the public media to indicate that something similar maybe happening in other parts of the country. I believe it probably is and would welcome anecdotal and observational input from you if youre in a position to see changes in your area.

What It Means for Sellers

You need to be more patient if you are a seller. When the market slows, there is less instant gratification for sellers....