BUYER BEAHAVIOR CHANGING

Prices have increased at a rate that cannot be justified by economic fundamentals.

o The current rate of home price growth is unsustainable. Double-digit price increases cannot go on forever. Some buyers have stepped back from the house hunt as mortgage payments now exceed their budgets.

o Fewer people are starting online home searches.

o Fewer people are applying for mortgages as compared to this time last year.

o Interest rates are on the rise. As mortgage rates shoot up at the fastest pace in history, the typical home buyer's mortgage payment is now $500 more per month than it would have been if they'd purchased a home in January.