The Latest on Supply and Demand in Housing
The stark disparity between high buyer demand and poor housing availability over the previous two years drove increased home sales and buyer competition. However, as supply and demand hit an inflection point this year, things are changing.
The graph below demonstrates how much has changed in today's world.
As mortgage rates rose and economic uncertainties increased this year, buyer demand decreased. When you look at the red bar on the graph, you can clearly see that demand is slowing down. It shows how showings, a sign of buyer desire, have slowed by more than 12% since this time last year using the most recent data from ShowingTime.
Turn to the green bar to see how the supply of houses has changed. It shows that active listings are up approximately 27% from the previous year using data from realtor.com. This is so that the home inventory could rise in 2022 due to the demand being moderated.
What Do Buyers Need to Know About This Turning Point?
There will be less competition and more possibilities than last year if you're considering buying a property. As you enjoy having more options for homes in your home search, consult a reputable real estate expert to learn how the additional supply has also improved your negotiating position. That expert can explain to you the opportunities and difficulties customers confront in the changing market of today. You might be shocked to learn that they've changed from how they were a year ago.
What Do Sellers Need to Know About This Turning Point?
The total supply of homes for sale is still low, so keep that in mind if you're seeking to sell. This means that even with the increase in inventory and the decreasing buyer demand this year, your home will still sell if you work with an agent to set the price based on current market worth. This is due to the fact that there are still purchasers out there who are willing to relocate, and your home could be just what they're looking for.
To sum up
The best resource for information on current supply and demand whether you're considering buying or selling a home is a dependable real estate agent. Let's communicate so that you are aware of what is going on in our neighborhood market and what it implies for you.