After two years of unprecedented growth in the real estate market, things are changing and they are changing fast. The pandemic drastically affected the housing market. Since 2020, we have experienced bidding wars, low inventory, and skyrocketing prices fueled by super-low interest rates.
The mortgage rates have now changed and gone up. This has caused the housing market to slow down, however, it is important to note that we are still in a seller's market. It is just more balanced. The higher interest rates have simply lowered demand which means that homes may take a little longer to sell. With that being said, it is super important for home sellers to price their homes correctly. Pricing strategically is key. You can achieve this by getting a current market valuation.
In addition to the increase in mortgage rates, we have seen a rise in home values. This means that fewer buyers will be able to afford to purchase a home in this market.
Homebuyers haven’t had an easy go of it for the past couple of years, but there are signs that this is behind us. You finally have more options to choose from. But, if a home is priced well, it's still going to be competitive.
Housing inventory is still exceptionally low and demand is likely to stay strong. Rather than seeing prices drop, they are expected to grow, but at a slower pace. So where is the housing market headed? Buyers across the country have been waiting for summer to finally see a return to some normalcy.
As it turns out, a return to normal is probably pretty far off, but we are starting to see a slight shift in the real estate market. Things are trending upwards and we are beginning to see a more balanced market.
It is important to remember that real estate trends are local. Work with an agent that is knowledgeable in the areas you want to purchase or where you’re selling your home. Know what you can afford and stick to a realistic budget.
For home sellers, it will still be a strong seller’s market, but not as intense as it was earlier this year with a smaller likelihood of bidding wars driving up your sales price. Get ahead of preparing to sell your home. A local agent can help decide what repairs and upgrades could help with the sale.
Whether you are buying or selling, try not to get too caught up in the headlines.