Over the last two years, the massive mismatch between the limited housing supply and the strong buyer demand pushed house sales and buyer competitiveness to unprecedented heights. This year, though, things are changing due to supply and demand reaching a point of inflection.
The following graph may be used to assist in illustrating the tale of how much things have changed in recent times.
Higher mortgage rates and economic uncertainties slowed buyer demand this year. The red graph bar shows this demand slowing. ShowingTime data shows that buyer demand has decreased by 12% since last year.
The green bar shows housing supply changes. Realtor.com statistics show active listings up 27% from last year. In 2022, demand moderated, increasing housing inventory.
What Kind of an Impact Will This Tipping Point Have on Buyers?
If you are contemplating the purchase of a property, you will have less competition and access to a broader range of possibilities than you would have had in the previous year. When searching for a new house, take advantage of the fact that more options are available. Consult with an experienced real estate agent to learn how the rise in available homes has given you more leverage in negotiations. This expert will be able to walk you through the possibilities and problems that are presented to purchasers in today's ever-changing market. You could be taken aback to learn that they have changed since you last saw them a year ago.
What are the Implications of This Turning Point for Sellers?
Be aware that the available inventory of homes for sale is still somewhat low if you consider selling your home. This implies that if you collaborate with a real estate agent to price your home based on the market's current value, your home will still sell this year, despite the rise in available inventory and the decreasing demand from buyers. This is because buyers are still interested in relocating, and your home might be just what they are searching for.
Suppose you are contemplating the purchase or sale of a house. In that case, a qualified real estate agent is the most reliable source of information about the current real estate market's supply and demand conditions. Connect with me to explain what's happening in our regional market and explain what it means.