The substantial imbalance between low housing supply, high buyer demand and low home sales has pushed home sales to new heights over the past two years. However, this year things are changing as demand and supply reach a tipping point.
This graph shows how things have changed in the past.
Buyer demand has slowed this year due to rising mortgage rates and economic uncertainty.
The graph’s red bar shows the slowdown in buyer demand.
This graph uses the most recent ShowingTime data to show how showings, which are an indicator of buyer demand, have fallen by just over 12 percent compared with the same period last year.
The green bar shows how housing supply has changed. It uses data taken from realtor.com in order to show that active listings have increased by nearly 27% over last year. This is because of the increased housing inventory due to moderation in demand.
What Does This Inflection Point Mean for Buyers?
You’ll find less competition and have more options if you are thinking about buying a house.
You will have more homes to choose form in your home search. A trusted real estate professional can help you understand how increased supply has impacted your ability to negotiate, however.
This professional can help you understand the challenges and opportunities buyers face in today’s changing market. They may surprise you to discover they are different from what they were one year ago.
What Does This Inflection Point Mean for Sellers?
Inventory is still very low if you are looking to sell your house.
This means that even with the increasing inventory and a lower buyer demand this year, your house will still sell if it is priced based on its current market value.
This is because there are still buyers who want to move and your house might be the perfect fit.
Bottom Line
A trusted real estate professional is the best person to consult if you are thinking about buying or selling a house. Let’s get in touch to find out what’s going on in your local market, and what it means for you.