What You Need to Know about the Housing Market

The housing market is ever changing, even from day to day. After a year of soaring prices and low inventory, the market is beginning to balance out, with more homes available and more moderate price increases. In this blog post, we'll explore the current housing market trends.

Inventory is increasing.

One of the most significant trends in the housing market is the increasing inventory of homes for sale. According to the National Association of Realtors, the inventory of existing homes for sale was 1.23 million at the end of March 2023, which is up 19.4% from the previous year.

The increase in inventory is due to several factors. First, more homeowners are putting their homes on the market, as they feel more comfortable with the economic and health conditions. Second, builders are ramping up construction, leading to an increase in new homes for sale.

Housing prices are stabilizing.

After a year of soaring prices, the housing market is beginning to stabilize. According to the Case-Shiller National Home Price Index, housing prices increased by 6.2% in the first quarter of 2023, compared to 15.8% in the same period for 2022.

While prices are still increasing, the rate of increase is much slower than last year. This trend is due to the increase in inventory and a more balanced supply and demand ratio. As more homes become available, buyers have more options, and sellers have less leverage to demand high prices.

Mortgage rates are still low.

Despite the stabilization of the housing market, mortgage rates remain low on average from previous decades. The market reset has created rates more consist with averages from pre-covid record setting low interest rates. Home values and pricing overall has also reset in our area.

Low mortgage rates have continued to drive demand for homes, even as prices have begun to stabilize. As long as mortgage rates remain low, buyers will continue to have the ability to purchase homes at a more affordable cost.

Increased demand for sustainable housing.

We're seeing an increased demand for sustainable housing. Homebuyers are increasingly interested in energy-efficient homes, that have smart home technology, and use sustainable building materials.

This trend is due to growing awareness of climate change and the desire for more sustainable lifestyles. As a result, builders are incorporating sustainable features into new homes, and homeowners are retrofitting their existing homes to be more energy-efficient.

In conclusion, the housing market is experiencing a significant shift towards a more balanced market. With an increase in inventory, stabilizing prices, low mortgage rates, and increased demand for sustainable housing, it's a good time for both buyers and sellers to enter the market.

If you’re ready to take a deeper look into the market and understand if right now is a good time for you to buy or sell, I’d love to connect and find the right deal for you.