Here’s what I think about the rumors of a real estate market correction.
The No. 1 question we’re hearing right now is, “Is the housing market correcting?” If you’re following the news, all of the headlines about housing market conditions may leave you with more questions than answers. Every industry is struggling with supply chain issues. This includes the housing market, where demand far outpaces supply.
Here’s what you need to know: The housing market is moderating compared to the last two years, when we had a jump in millennial homebuyers that led to an influx of demand. There weren’t enough homes to purchase because of years of underbuilding and sellers who held off selling because of the pandemic. This led to record-high demand and record-low supply.
Buyer demand is still very strong.
The latest data shows early signs of a shift back to the market we had leading up to the pandemic. It does not show that we’re headed for a crash or correction. As Realtor.com says, the housing market is at a turning point. Headlines are now talking about how existing home sales are declining, but perspective matters. Buyer demand is still very strong despite increasing mortgage rates as purchasers understand rents are also on the rise.
What does this mean for sellers? Anyone thinking of putting their home on the market shouldn’t wait. A seller will always negotiate the best deal when demand is high and supply is limited. Later this year, your competition will increase as the homeowners who waited to list finally make the leap.
According to the Deputy Chief Economist at Freddie Mac, “New housing starts off 2022 strong, just edging out 2021 for the most in January since 2006. As these newly built homes are completed, they will also become competition for your house.”
This means you have a tremendous opportunity to sell right now. If you’re ready to start the process and maximize your price, don’t hesitate to reach out via phone or email. I look forward to hearing from you soon.