I have a few rental townhomes - just reporting on that tiny microcosm, not using t to make conclusions about the current state of market.
Suburb of Atlanta - 3bed/2.5 Bath townhome complex.
2 years ago I bought units at $247k.
At the apex 1 year ago - they would've sold for $338k-340k in about 10 days.
Today....
They are selling from $300k-315k and usually on market for 25 days. I have seen the latest listing at $299k. Dunno why - when one just went under contract at 305K last week.
Down the street..... there's newer complexes that are completed, or completing construction. These are more like Millenial Mayberry - replete with the stainless steel, granites, puppy trails, "gym" etc. 3bd/2.5 baths there - have dropped noticeable. What was going under contract at 425k a year ago - I'm seeing them go under contract around $365-$385k this week.
Schools of thought from local professional I deal with: It could be that buyers will just get used to higher rates, higher costs. After all - people have indeed accepted higher prices in just about everything else. I'm not ready to make this my theory to operate on - but I feel a SLIGHT chance of a 'shadow foreclosure' market coming up. There will be *some* more job losses. Also, there is a handful of people out there who got their Covid money, quit their job, decided to start an underwater basket-weaving business on Etsy - -- and sadly, they might realize it's not gonna work out. On one hand that hurts my property values - but maybe it creates buying opportunities as I have no doubt about population and demand.
I still haven't been able to buy a rehab-house. Perhaps made 12 offers in the last 6-8 months and keep getting outbid. Some of the ones I lost have been rehabbed......and are still on the market and I feel will be a loss. If things dip a bit more I'm really hoping to explore this part of real estate.