Is the market changing. Is there a shift in the air or is it just the tremors we've been having lately here in Santa Cruz? They market is definitely changing, but maybe just changing in our mind because I haven't really seen anything. I've been trying to make a market update video all morning long, and my phone has not stopped buzzing, ringing and, and pinging, because the market is still really very strong. You have sellers who want to sell, you have buyers that want to buy. Now the interest rate is 5.75%. That is higher than January 2022. It was 3.5% or so in January and it just skyrocketed. Is that going to really change things? Well, we expect that it will, but we're just not seeing it. I'm hearing of less offers, but I haven't heard a whole lot or seen a whole lot on the MLS of properties that are getting less than their ask price.
I am still seeing listings recorded day after day, where offers are coming in at over ask. So sellers, it's still a great time to sell. You might just want to do it a little sooner than later. And buyers, the good news for you is, as the sellers, worry about these escalating interest rates, you might start to see some more inventory. Will you see lower prices? Isn't that the million-dollar question we just don't know, because right now, like I said, the, the offers are still coming in at over ask because they know that they have competition. Here's the other thing you need to keep in mind. This is where cash comes back, and cash offers will probably become more of a thing as interest rates go up because when people have cash they'll use it when interest rates go up. Why not it's cheaper.
Right? And last year money borrowing, was so cheap. Why wouldn't you just use someone else's money. Here is the good news as sellers flood thinking I want to capture this and get in before this market changes, you might see more inventory. I just can't guarantee you're going to see, $500,000 for beach front. But I still think there's opportunity for buyers and sellers. And as I watch the market, I can tell you markers to understand where to pinpoint where the market shifts. One of them is days on market. It would be Dom on some websites, but that's when you see more of those that you might see the market change. Right now we expect a change. We're talking about changes. We just really haven't seen them yet. And don't forget my podcast, The Realtor Lady we explore a lot of the changes we expect there.
The Realtor Lady
Coming up I do a deep dive on how the market will shift because it's not really a pop, I expect it will be kind of a slow fizzle. If you need to talk with me about getting into the market or getting out of Santa Cruz. Feel free to give me a call. I'd love to hear from you or email me or text me. I'm here for you.