Why our market is slowing and what it means for buyers and sellers.
Is the real estate market slowing? The short answer is yes, but it is still a great time to buy and sell.
Year over year our inventory went up 131%, which sounds like a lot, but it’s not. Our market has had less than one-third of a month of inventory for almost two years. That means if no new homes came on the market, we would have sold out of available houses in around 10 days. After the increase, we have a little over a month’s worth of homes, which is much healthier for our market.
A main reason we’re seeing this change is that the Federal Reserve is fighting inflation. There’s a lot of money in the economy right now, which means your grocery and gas prices have gone up this past year. The Fed is trying to slow the economy to help fix this, and one of the ways they do that is by increasing the cost of borrowing, which affects the mortgage rate.
However, you have to keep this in context. The market is slowing, but it’s slowing by design. If it stayed as hot as it was, it would be impossible for many people to afford homes. A slowing market is healthier long term. Sellers will still sell, and buyers will still buy, but maybe not at the frenzied rate we’ve seen.
Be cautious where you get your real estate news. The media loves the negative publicity of talking about falling home prices or a recession, so be wary of misinformation. Come to us to learn more about the market. We’re well-educated, and we have agents on the street.
If you have any questions, please call or email your Colemere Realty specialist. We’d love to help you.