You probably see headlines analyzing the state of the home market today if you read the news. There’s a good chance that some of the more recent tales you’ve seen include words like cooling or slowing when discussing the market’s future.
What do these phrases signify, though? Even while the property market is far from average, it’s still quite robust for sellers, especially compared to the few years before the epidemic. In light of this, what can the past reveal about the real estate market now and whether it is slowing down?
They may mention the decline in home sales in headlines. But do such headlines accurately convey the story? There was a 2% decline from July to August, according to the National Association of Realtors (NAR) most current Existing Home Sales Report.
Contextual history is essential. The years leading up to the health crisis were some of the more typical ones, but today’s house sales are far ahead of those. That is good news if you intend to offer your house since it implies that buyers are still interested in the market.
Homes Are Selling More Quickly Than Usually
Sellers may understandably question if their home will sell as soon as they’d like when reports say the market is slowing.
Again, if we review statistics from prior years, we can find that the average time on the market (17 days) indicates that properties are selling more quickly than is typical.
The Standard Is Still Bidding on Wars
In August, the average number of offers that properties received decreased, according to the NAR’s Realtors Confidence Index. Because of this, many stories may focus on one statistic without adding the necessary context.
It’s crucial to contrast current market tendencies with those from former years once more. Presently, on average, there are more offers per listing than in 39 of the preceding 45 months. That implies that there is still a strong chance of a bidding war for your house. Additionally, the number of bids your home receives may significantly impact the sale price.
Slowdown in the Market
While some months-to-month data shows minor losses, it’s crucial to consider the historical context when interpreting current market trends.