Over the past two years, a large imbalance between low housing supply and high buyer demand has driven home sales and buyer competition to new heights. However, things are changing this year as demand and supply have reached a tipping point. The chart below helps illustrate how things are different today.
This year, buyer demand has eased as higher mortgage rates and mounting economic uncertainty moderated the market. This slowdown in demand is clear when you look at the red bar on the graph. It uses the latest data from ShowingTime to illustrate how showings (an indicator of buyer demand) have softened by just over 12% compared to the same time last year.
Now for a look how the housing supply has changed. Keep your eyes on the green bar. Using data from realtor.com, it shows a nearly 27% year-over-year increase in active listings. That’s because the moderation of demand allowed housing inventory to increase in 2022.
What does this turning point mean for buyers? If you’re looking to buy a home, there’s less competition and more options than last year. Enjoy having more homes to choose from when looking for a home, and rely on trusted real estate professionals to understand how increased supply has increased your bargaining power. This expert explains the opportunities and challenges that buyers face in today’s changing market. You will be amazed at how different it is from a year ago.
What does this turning point mean for sellers? If you want to sell your home, you should know that inventory is still low overall. This means that if you work with your agent to value your home based on its current market value, your home will sell this year, even if inventory increases and buyer demand slows. That’s because there are still buyers looking to move, and your home could be exactly what they’re looking for.
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If you are thinking of buying or selling a home, the best place to get information about today’s supply and demand is to consult with a trusted real estate professional. Get in touch to find out what’s happening in our local market and what it means for you.
Find out why Kaya Homes is the leader in Long Island real estate and are your go-to realtor in the Lynbrook, Oceanside, Malverne, Hewlett, Valley Stream, Baldwin, East Rockaway, Woodmere, Cedarhurst, Hewlett Harbor, and Freeport area.
Fri, 04 Nov 2022 21:13:16 +0000
