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As May turned to June, a shift in the housing market took place

Experts expect mortgage rates to remain low for first half of 2021
Posted at 6:26 PM, Jul 22, 2022
and last updated 2022-07-23 00:33:15-04

2022 started off with a hot real estate market, but as May turned into June, realtors say a shift in the housing market took place.

"With a lot of things going on out there in the economic and political sphere, it definitely flicked a switch," said Jay Chiasson, Navigators Real Estate Captain and Owner.

Chiasson explains that there has been a slow down in overall sales and homes are spending a longer amount of time on the market.

"Selectively, some prices are going down and some are still going way over, $100,000-plus over asking," Chiasson said.

Residential areas like San Luis Obispo and Templeton are still seeing a hot market, but areas where people are often looking to buy a second home, out toward the coast, are feeling the cooldown.

"The second home market is probably seeing the bigger slowdown, the bigger price reductions," Chiasson said.

Due to the slow down in sales, there is an increase in inventory. Keller Williams Realty "Team Sweasey" Broker Associate Hal Sweasey says sales have decreased significantly since this time last year.

"Sales are down about 30 percent year over year," he said.

Since last month, some properties on the Central Coast have significantly reduced their prices.

"There are definitely more price reductions so if somebody started a little on the high side they would have to adjust their price, so we've seen that month over month certainly," Sweasey said.

Sweasey says though inventory is up, it still isn't anywhere near a balanced market and is still in favor of sellers.

"Time on the market is getting to more normal times, but again, three weeks on average is way below what would be a balanced market. It's just not the 4-5 days we had been experiencing for quite some time," Sweasey said.