Here is the latest market data every buyer and seller should know.
Are we heading for a market crash? To answer this question, let’s look at a few critical market indicators.
With housing affordability at a low 33%, existing home sales have continued to soften inflation. High interest rates and fears of potential recession have taken their toll on buyers and sellers this past summer, leading them to stay on the sidelines to see what will happen with the market. New listings are down 3%, sales under contract are down 14%, and inventory levels rose by a staggering 78% year over year.
“Don’t put your housing needs on hold just to see how the market plays out.”
What does this all mean for your real estate plans? For sellers, this is good news. The unprecedented appreciation over the past few years has led to very high home values. However, most experts believe it will change. As the market continues shifting in a more buyer-friendly direction and as interest rates trend upwards, many believe home values will go down over the next few months. So if you’re considering selling, I suggest doing it soon before these high home prices change.
As for the buyers, it’s a bit more difficult to determine; but if you find your dream home or need to purchase now, then by all means, go for it. Don’t put your housing needs on hold just to see how the market plays out. You can always refinance when rates are lower. But if you’re not in a position where you must purchase, it may be wise to sit back and let this market play out a little bit more. Although interest rates may not be going down any time soon, there is an excellent chance that most home prices will fall in the upcoming months as inventory continues to increase.
As always, I’d love to talk to you if you have any questions. Feel free to call or message me at any time. I look forward to hearing from you!
