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<v 1>So the housing market has been super competitive since the pandemic,</v>

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but now there are signs emerging that things might be slowing down.

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So at the beginning of the first quarter,

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the Fed announced that they were going to raise interest rates throughout

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the year. As a result of that, the mortgage rates also were expected to go up,

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and so home buyers,

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in order to beat the coming mortgage rate hikes, flooded the market. You know,

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wanted to get a contract signed as soon as possible.

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So you saw a tremendous activity in the first quarter,

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prices were up by more than 20% compared to last March.

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But then I've been talking to experts and they have been saying that in

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April and May, things appear to be slowing down a bit.

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As the purchasing power of the buyer has come down because of the increased

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mortgage rates,

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and the reason why the mortgage rates are high is because the Fed raised the

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interest rates to tamp down on inflation. The cost of everything has gone up,

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so that itself brings the purchasing power of the buyer down. Added to that,

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you have the mortgage rate hikes, so all of those factors together,

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the demand has really gone down.

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So one in five sellers has had to take a price cut.

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That's a new reality now. And the people requesting tours have also gone down,

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so compared to last May,

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the number of people requesting tours have gone down by about 29%.

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It was basically a seller's market and they could literally demand anything they

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wanted, but now the buyers may have more negotiating power,

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right? So, first of all, the sellers can't demand crazy prices. Secondly,

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buyers also can put in a few requests like contingencies,

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which were commonplace before the pandemic.

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People who are looking to sell their homes will have to make some concessions.

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They still will probably be making a profit if they bought the house more than

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two years ago,

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but the buyers are not going to be as aggressive as they were two years

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ago.