Homebuyers flooded the housing market in the first quarter of the year as they tried mightily to beat the expected mortgage rate hikes – resulting in one of the most competitive quarters since the onset of the pandemic. But there are signs that point to more favorable negotiating conditions for homebuyers in the months ahead, experts say.

Home prices rose by 21% in March from a year ago, the strongest March year-over-year increase on record, according to the S&P CoreLogic Case-Shiller Home Price Index.

But there are indications that the Federal Reserve rate increases to control inflation are beginning to influence the housing market, experts say. And they expect a deceleration in the growth rate of U.S. home prices and better market conditions for those looking to buy homes.

The median existing-home sales price increased at a slower year-over-year pace of 14.8% whereas it grew by 19% from April 2020 to April 2021.

For the week ending May 27, mortgage applications decreased 2.3% from one week earlier and 14% from the same week one year ago, according to the Mortgage Bankers Association.

Inventory has also been on the rise since reaching a low point this January, and this may help ease price appreciation further in some markets.

That is good news for buyers.

The market's rebalancing toward a more balanced market where buyers have a little bit more power and seller have a little bit less pricing power.

If you are thinking of making a move, as a buyer, or even as a seller, please reach out. We're here to help.