Housing Market Trends Slowly Starting To Change As Buyers Become More Cautious

For the past couple of years, real estate agent Megan Claiborne has had no problem finding buyers for her clients.

"Over the past couple of years, it has been a mad dash I'd say," said Claiborne.

With low interest rates and low supply, Claiborne said the market has been historically competitive with homes selling in a matter of hours.

"We are approximately three million houses short of the demand nationwide," she said.

But Claiborne said the trends are slowly starting to change.

On Wednesday, the federal reserve raised interest rates by three quarters of a percentage point, the biggest hike since 1994.

It's the third time the feds have increased rates so far this year to try and slow inflation.

“A few weeks ago we saw a slight increase and you could definitely tell from a real estate agent perspective who does this every day that there was a slight shift in the market,” said Claiborne. “Where instead of selling with multiple offers within 24 hours on a well-priced market value property, it was taking two or three days."

With mortgage rates already starting to rise, Clairborne said buyers are more cautious of their budget.

And she believes home prices will rise at a more steady, natural pace, instead of the record pricing seen the past couple of years.

"Over time, I think we'll see with the economics of things the supply and demand, as more houses become available things will be more affordable," said Claiborne.

She said the key though, whether you're looking to buy or sell, is to talk to an agent you trust.

National Real Estate Broker, Redfin just released some new data on Thursday as well.

It said "the highest share of sellers on record dropped their list price during the four weeks ending on June 12th."