I don't think prices are going down. What I see is that any new listing comes in the market is inflating their prices without any thought.
Buyers did react on the interest rate hike, however, interest rate is still extremely low. I recently refinance my own home at 2.85% for 5 ARM. It was a super jumbo loan and I was surprised to lock that rate. There are always options for refi.
Earlier there were several buyers in the market but low inventory so every other home was going higher than the asking price. Buyers were frustrated and they were putting unrealistic price on any home. Now the inventory is bit more but there are not many buyers, not only because of the interest rate but also due to other factors like: School started in the end of August had a big impact, more inventory in the market.
Even though the time factor and interest rate factors are contributing to a large, home owners are still expecting high price of their home at this time and trying to inflate their home price to get big dollars. And that eventually deflate the price if the home doesn't get sold at that price after 25 days.
My suggestions to all the home owners and their realtors to keep their home price reasonable or little low to get the higher price. Reducing the price at a later stage brings your home value down and is not good for your home, that community, and for the market.
Home & More Realty Inc