The Real Estate market is changing, but contrary to what the media reports, it’s not a bad thing.
The past three years have been dominated by sellers in a market where low inventory and high demand caused record housing prices and heavy competition among buyers. For the first time since 2019, housing inventory is increasing, what does this shift in the market mean?
In May 2022, Realtor.com released housing data that revealed key turning points in the market. As far as inventory, the data shows the number of active home listings entering the market is higher than it’s been since 2019. While having more homes on the market is good for buyers, they are still spending less time listed on the market compared to last year, and home prices are still rising.
So, what can you do to navigate this change?
As a Buyer
You need to know your budget. With the recent rate increase and rising home costs it’s essential to do your homework and plan what you can truly afford in advance. With more inventory in the market, it should ease the bidding wars buyers have experienced in recent years that have led to paying over asking value on most homes. Be flexible.
As a Seller
The market shift is still ideal if you’re trying to sell a home. A few things to note is that with costs of home prices and mortgage rates rising, buyers want to feel safe. Consider having a pre-inspection before putting your home on the market. It could provide valuable information for potential buyers and eliminate certain concessions that could cause headaches down the road. The market still resides in favor of sellers for now. However, the good news is that there are more active listings in the market today than last year.