Real estate has been experiencing peaks and valleys throughout the last two years.
These ebbs and flows are days when the market is trying to get to a place of stability. New home sales fell by 12.6% in July of 2022. It was the lowest sales rate since 2016. When looking into causation, affordability decline is the primary reason. Inventory rebounded to the highest level since 2008, resulting in 10.9 months of supply, up by 81.7% from a year ago. Whereas during the years of COVID, it seemed extremely difficult to find any homes on the market nationally. It was a seller’s market, and the prices reflected this. However, more financial vehicles were available to buyers at lower interest rates than the current market provides. It took a while for the interest rates to align with the market demand. Now buyers are struggling with the affordability of existing homes on the market, often with unrealistic selling price expectations due to abnormal needs.
Another matrix to consider in July was the Pending Home Sales Index of signed contracts on existing homes. It dipped by 1%, resulting in higher mortgage rates and the slow economic growth weighing on the housing market. However, this doesn’t mean there are no buyers out there. There are buyers eager to find their ideal home. Navigating the new housing marketing is complex; therefore, we advise reaching out to real estate agents you trust for support.
When you consult a real estate agent, whether you want to sell or buy, they can help you anticipate the changes in the market. They can also help you know what preparation action steps are necessary. This can help expedite your real estate journey and help you make the best possible decisions throughout the process without getting overwhelmed by all of the market changes. Also, to get your prepared, here is a quick video to well you through how to purchase a home. It really can be this simple!