Here’s what you need to know about the future of our market.
Our market appears to be reaching a tipping point. If you don’t know what’s going on, you could make an uninformed decision that hurts your bottom line. That’s why I want to quickly go over the latest market statistics and discuss what they mean for you.
National home sales dropped 2.7% in March, and mortgage applications fell by 5% in mid-April. Why is this happening? Many buyers have been forced out of the market recently due to rising interest rates, stock market worries, and high inflation. This has led to fewer multiple-offer situations and more days on market for the average listing.
Don’t worry; it’s not all doom and gloom. Interest rates are curbing buyer demand, but inventory is still scarce. Decreased demand is discouraging some sellers from entering the market, so if you list, you’ll have less competition. Since supply and demand are both falling, our market likely won’t flip from a seller’s market to favoring buyers. Higher mortgage rates may decrease the pace at which home prices grow, but the experts agree that values will still increase.
“Our real estate market is expected to remain strong.”
How does our wider economic situation affect the housing market? Inflation is hitting the average person hard, and many are worried we’ll enter a recession in 2023. Despite this, the real estate market is expected to remain strong. Higher interest rates will slow activity, but they won’t cause a crash.
This may be your last opportunity to sell for top dollar before our market slows down. If you have questions about today’s topic or anything else, please call or email me. I am always willing to help!
