You might wonder how the real estate market slow down might affect your home buying decisions. If you’re considering moving, you should know that the market is still far from typical.
Even if more houses are sold this year, the housing market is still undersupplied. And it indicates that the current market is still in favor of sellers. Consider it like this:
When more properties are sold than potential buyers, it is considered a buyers’ market. When this happens, buyers are in a stronger negotiating position since sellers are more inclined to make concessions to sell their homes.
This is the exact opposite of a seller’s market. There aren’t enough properties available for the number of purchasers in the market. This gives the seller complete control. Should this happen, purchasers will exert every effort to compete for the few available residences.
The market is neutral when supply is balanced, and there are enough homes for sale at the current sales pace.
And because the supply has been at or near record lows for the past two years, we’ve been in a scorching sellers’ market.
How Does This Affect You?
The housing center director at the American Enterprise Institute, Ed Pinto, provides the definitive explanation of the state of the market today:
The best overall conclusion is that we’ll switch from a brisk sellers’ market to a moderate sellers’ market.
Even if the market is slowing down, the situation is still favorable to you. You’ll have luck selling your home today if you collaborate with an agent to set the price at market level. Even though buyer demand is waning due to rising mortgage rates, adequately priced properties are selling quickly. That indicates that you still have time to advertise your home.
The property market of today still benefits sellers. Contact a local real estate adviser if you’re prepared to sell your home so you can get moving.