Is the Market Crashing?
Is the market crashing? Well, here is how I look at it. After 2 years of an unprecedented real estate market, we finally going back to normal. The market is normalizing, not crashing. What does the shift in the market mean? Will we continue to see spikes and swift changes in the coming months? Again, I love to refer to what the experts are saying.
With the number of homes currently selling slowing down, we are seeing the market start to look more like it did before 2020. Looking at this graph from NAR, projections are showing home sales return. Now, the last two years have been unprecedented in terms of the sale of homes. Going back down to numbers like 2019 is not a bad thing, we had a good market at that time! But there is still more work to be done to get to that point. Danielle Hale, Chief Economist with Realtor.com says, and I quote, “Active inventory continued to grow, rising 21% above one year ago…”
In other words, we’re starting to add more options, but the market needs even more, before home shoppers have a selection that roughly equivalent to the pre 2020 housing market.” Also, interest rate hikes have made it harder for buyers to qualify, but it’s not much different than what they were experiencing over the past year where they had to offer significantly over asking to even be in the running to get their offer accepted. There are options and we can help you analyze things you may not be thinking about when deciding about buying.
Whether you want to sell your existing home, buy your first home, upsize, downsize, purchase a vacation home, or just talk about options, a real estate professional is your best source for information based on current trends in our area. If you're interested in learning more about the 2022 real estate forecast, don't hesitate to reach out - we're happy to help!