The housing market has been impacted by mortgage rates being significantly higher now than at the beginning of the year. As a result, buyer demand and property sales are returning to a range similar to those seen before the epidemic.
However, the return to pre-pandemic levels is not a terrible thing. The property market saw some of its most good years before the epidemic. To demonstrate how the present housing market is still robust as it goes through this transition, it is crucial to contrast today with previous average years rather than the odd pandemic years.
Higher Mortgage Rates are modifying the Housing Market
According to agents and brokers, the ShowingTime Showing Index monitors the volume of house showings. It’s also a reliable indicator of changing consumer demand.
The tale that this data tells is broken down as follows:
The data from early 2017 to early 2020 provide a reasonable basis for pre-pandemic demand. The consistent upward and downward patterns shown in each of these years demonstrate the market’s usual seasonality.
This demonstrates that consumer demand is down from levels witnessed over the previous two years and that the real estate boom is slowing down due to increased borrowing rates. Because more inventory is available, purchasing your future house should be easier for you than it would have been during the epidemic.
Higher Mortgage Rates Slow Home Sales’ Previously Frenzied Pace
This year, additional changes also started as mortgage rates began to climb. Another illustration is the declining rate of home sales.
The market is seeing the effects of increased mortgage rates this year, reducing buyer demand. Because of this, the market’s expectations for house sales this year are more in line with those of 2018–2019.
Why is this news all good for you?
Both elements have created a window of opportunity for those trying to buy a property and for homeowners wishing to relocate. Housing inventory can increase when demand moderates and the rate of house sales lowers, giving you more alternatives for your home search.
Therefore, don’t be alarmed by stories that the market is slowing down or stabilizing. The housing market is still robust; it’s only starting to cool off from the uncontrollable frenzy it experienced during the height of the epidemic. This is excellent news. It gives you fresh possibilities to locate a residence that satisfies your wants.
Because of increasing mortgage rates, the housing market is changing, although it is still healthy. If you’ve been trying to purchase a house over the past few years, but it seemed unattainable, now might be your chance. Although it’s difficult to buy a property right now, there are more opportunities for those seeking.