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The housing market has been out of balance for the majority of the past two years, due to very low supply and extremely high buyer demand and competition. The result has been 5x the appreciation levels we saw pre-pandemic. Recently buyer appetite has eased due to rising mortgage interest rates, along with the economic unpredictability. According to Realtor.com, showing times (a predictor of buyer demand) is down 12% compared to same time last year. Realtor.com also shows active listings (inventory/supply on the market) are up 25% compared to same time last year. The widening gap between these two statics (supply and demand) suggests we are at an inflection point in the housing market today.
Buyers will have less competition and more choices than over the past couple years, resulting in an increase in their bargaining power. Sellers who are looking or need to sell their house will realize inventory is still historically low. If your house is priced appropriately based on current market value, it will sell even with inventory increasing and decreased buyer demand.
There are still buyers our there who need and want to buy. And there are still sellers out here that need and want to sell. It is vital in today’s environment to align and work with a trusted real estate advisor who can give you all the data points in your local market, talk through the challenges and opportunities, and put you in the best negotiating position.