Skip To Content

What Does the Recent Housing Market Shift Mean for Sellers?

The housing market has been in a cooldown for the last few months, and there are plenty of questions about what this shift means for sellers. Well, don’t worry! We’re here to help. In this blog post, we’ll discuss why it’s still a seller’s market even during the cooldown and explain what recent news about the housing market means for you. Keep reading to get all the information you need to make informed decisions about your property!

Fewer Homes for Sale than Pre-Pandemic

One of the main reasons why it’s still a seller’s market is that there are fewer homes for sale than before the pandemic hit. This is due to two main factors: first, many people put their plans to sell on hold during the early days of the pandemic, when it was unclear what was going to happen. Second, even though some people did go ahead with their plans to sell, there were far fewer new homes being built during the pandemic, which has helped to keep inventory low.

recent articlefrom Calculated Risk helps put this year’s increased inventory into context (see graph below):

recent article from Calculated Risk helps put this year’s increased inventory into context (see graph below):

Homes Are Still Selling Faster Than More Normal Years

Another reason why it’s still a seller’s market is that homes are selling faster than in more normal years. This is due to a combination of low interest rates, which make buying a home more affordable, and high demand from buyers who are taking advantage of the opportunity to buy while prices are still relatively low.

As the graph shows, the pre-pandemic numbers (shown in blue) are higher than the numbers we saw during the pandemic (shown in green). That’s because the average days on the market started to decrease as homes sold at record pace during the pandemic. Most recently, due to the cooldown in the housing market, the average days on the market have started to tick back up slightly (shown in orange) but are still far below the pre-pandemic norm.

Buyer Demand Has Moderated

Finally, while buyer demand has moderated somewhat from the peak of the pandemic, it is still higher than it was pre-pandemic. This means that there are still more buyers looking for homes than there are homes available for sale, which gives sellers an advantage in negotiating a sale price.

So, if you’re thinking of selling your home, now is still a good time to do so. A trusted real estate professional can help you navigate the market and get the best price for your home. Contact me today to learn more.

The graph below uses data from NAR going back to 2018 to help tell the story of this shift over time (see graph below):

Prior to the pandemic, it was typical for homes sold to see roughly 2-2.5 offers (shown in blue). As the market heated up during the pandemic, the average number of offers skyrocketed as record-low mortgage rates drove up demand (shown in green). But most recently, the number of offers on homes sold today (shown in orange) has started to return to pre-pandemic levels as the market cools from the frenzy.

Trackback from your site.

Leave a Reply