1. More home listings don’t mean lower home prices
The reality is that home prices are continuing to rise, with no indication that they’re about to start falling. While the pandemic-era trend of record home price growth is over, this does not mean that home prices are about to crash. Buyers can expect cooler real estate market conditions, with home prices increasing at a more sustainable rate. So, instead of the near-20-per-cent year-on-year increases, expect something closer to five or eight percent.
2. Ultra-low-rate mortgages are no more
The era of historically low mortgage rates has ended, with mortgage interest rates now having crossed the five percent threshold.
3. Homebuyer competition is still high
The market is still incredibly competitive.
4. There are signs that the market is slowly rebalancing
This is another way of saying that the seller’s market conditions that have dominated the housing market throughout the pandemic are finally giving way to something more resembling an equal market.
5. Home sales are on the increase
The wait-and-see strategy of the pandemic, where a lot of home sellers were holding back from listing their homes, is now definitely coming to an end. Aware that soon enough, the number of home buyers will begin going down, home sellers are finally taking the plunge and putting up their homes for sale. There still is a deficit of new listings. However, the overall trend is toward an increase in the number of homes for sale.
6. An immediate economic downturn is unlikely
Home buyers are worried about purchasing a home because of fears of a 2008-style crash needn’t fear. There are no indications that the rising interest rates will cause an economic downturn.
Don’t panic, but act fast. If you are thinking about buying, call me (267) 397-6291 for a complimentary Needs Analysis.