If you’ve been looking for a new home, you may have noticed that inventory is increasing. For the past couple of years, home inventory was extremely low. Now with more homes available for sale, are we finally moving into a buyer’s market?
Some Realtors believe there are some indications that we’re entering a buyer’s market. With homes staying on the market longer, some sale prices being reduced, and fewer mortgage applications, the hot seller’s market may finally be cooling.
Let’s recap each of these indicators.
1. More Housing Inventory
When housing inventory is low, there is more competition for listed properties. Additional listings will reduce competition. However, since housing inventory levels were at record lows during the pandemic, it will take a while before it equalizes to pre-pandemic levels.
2. Homes Are Listed Longer
At the peak of the recent seller’s market, in some areas, homes were selling sight unseen within days of being listed. Now, homes are staying on the market longer, which is a potential sign that demand has decreased.
3. Reduced Home Prices
Home sale prices skyrocketed the past couple of years, with consistent double-digit year-over-year growth. Sellers were able to secure higher prices for their homes — often over asking — since there was so much competition. Now, some home prices are coming down, creating more opportunities for buyers.
4. Fewer Mortgage Applications
High inflation levels led to the Fed dramatically increasing interest rates. After almost two years of very low mortgage interest rates, higher rates have led some buyers to put their homeownership plans on hold. This means there is less competition for homes right now, which is beginning to swing the real estate pendulum back toward buyers.
If you’ve been waiting to buy, let me know. Let’s start looking for that home that checks off all the boxes!