Time and location are two big factors in real estate: when are you buying or selling? Where is your home or the property you are submitting offers on?
If you’ve been keeping in tune with your Apple News notifications, then you may have seen headlines such as: “The home-buying frenzy is cooling off – here’s why” from Fox News or “The U.S. Housing Marketing Is Losing Some of Its ‘Frenzy’ as More Homes List for Sale” from The Wall Street Journal.
Redfin’s chief economist Daryl Fairweather, “projected that prices will stabilize this summer, as more homeowners list their homes after “realizing they likely won’t fetch a higher price by waiting longer to sell.’*”
What might cause the cooling of the real estate market?
1. Increased inventory (more listings coming to market)
2. Buyer Fatigue and Burnout
What is the Housing Market’s Temperature?
When you read a headline like cooling, it is important to remember it as just that: cooling. The housing market isn’t freezing over and home prices are not plummeting. In June of 2020 homes were selling in 39 days; this year they sold in under 2 weeks. Is that time pressure good for sellers and buyers or does it add an extra layer of anxiety?
Technically speaking, if the days on the market before opening up escrow went from 5 days to 10 days would that hurt home buyers or home sellers? In the past year, we’ve seen escrows opening at breakneck speed. Buyer demand is still strong, however for the buyers who have yet to open up escrow, they are tired and some are choosing to take a break.
Will those buyers be back? Most definitely. Rest assured that in the past year Americans more than ever see the value in owning a home.