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The Latest on Supply and Demand in Housing

Over the past two years, the substantial imbalance of low housing supply and high buyer demand pushed home sales and buyer competition to new heights. But this year, things are shifting as supply and demand reach an inflection point. 

The graph below helps tell the story of just how different things are 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 Showing Time 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 at how housing supply has…

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Perspective Matters When Selling Your House Today

Does the latest news about the housing market have you questioning your plans to sell your house? If so, perspective is key. Here are some of the ways a trusted real estate professional can explain the shift that’s happening today and why it’s still a sellers’ market even during the cooldown. 

Fewer Homes for Sale than Pre-Pandemic 

While the supply of homes available for sale has increased this year compared to last, we’re still nowhere near what’s considered a balanced market.  A recent article from Calculated Risk helps put this year’s increased inventory into context (see graph below): 

It shows supply this year has surpassed 2021 levels by over 30%. But the further back you look, the more you’ll…

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What Are Experts Saying About the Falling Housing Market

The housing market is rapidly changing from the peak frenzy it saw over the past two years. That means you probably have questions about what your best move is if you’re thinking of buying or selling this fall. 

To help you make a confident decision, contact us at The Aaronson Group. Here are a few things experts are saying about the fall housing market. 

Expert Quotes for Fall Homebuyers 

A recent article from realtor.com: 

“This fall, a more moderate pace of home selling, more listings to choose from, and softening price growth will provide some breathing room for buyers searching for a home during what is typically the best time to buy a home.” 

Michael Lane, VP and General…

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What the Experts are Saying About Home Prices Next Year

Experts are starting to make their 2023 home price forecasts. As they do, most agree homes will continue to gain value, just at a slower pace. Over the past couple of years, home prices have risen at an unsustainable rate, leaving many to wonder how long it will last. If you’re asking yourself: what’s ahead for the price of my home, know that experts are now answering this question, and its welcome news for homeowners who may have been led by the media to believe their home would lose value. 

Historically, home prices have appreciated at a rate near 4%. For 2023, the average of six major forecasters noted below is 2.5%. While one, Zelman & Associates, is calling for depreciation, the other five are calling for appreciation. The…

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Will My House Sell in Today's Market?

If recent headlines about the housing market have you worried you’ve missed your chance to sell, here’s what you need to know. Buyer demand hasn’t disappeared, it’s just eased from the peak intensity we saw over the past two years. 

Buyer demand then and now 

During the pandemic, mortgage rates hit record lows, and that spurred a significant rise in buyer demand. This year, rates increased due to factors like rising inflation, buyer demand pulled back or softened as a result. The latest data from Showing Time  confirms this trend (see graph below): 

The orange bars in the graph above represent the last few months of data and the cool down in the volume of home showings the market has seen since mortgage…

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The Ability to Negotiate is Back for Home Buyers!

If you’re thinking about buying a home today, there is welcome news. Even though it’s still a sellers’ market, it’s a more moderate sellers’ market than last year. And the days of feeling like you may need to waive contingencies or pay drastically over asking price to get your offer considered may be coming to a close. 

Today, you should have less competition and more negotiating power as a buyer. That’s because the intensity of buyer demand and bidding wars is easing this year. So, if bidding wars were the biggest factor that had you sitting on the sidelines, here are two trends that may be just what you need to re-enter the market. 

1. The Return of Contingencies 

Over the last two years, more buyers were…

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Is The Real Estate Market Slowing Down, or Is This a Housing Bubble?

The talk of a housing bubble in the coming year seems to be at a fever pitch as rising mortgage rates continue to slow down an overheated real estate market. Over the past two years, home prices have appreciated at an unsustainable pace causing many to ask: are things just slowing down, or is a crash coming? 

To answer this question, there are two things we want to understand. The first is the reality of the shift in today’s housing market. And the second is what experts are saying about home prices in the coming year. 

The Reality of the Shift in Today’s Housing Market 

The reality is we’re seeing an inflection point in housing supply and demand. According to realtor.com, active listings have increased more than…

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Expert Forecast on Mortgage Rates

If you’ve been thinking of buying a home, you may have been watching what’s happened with mortgage rates over the past year. It’s true they’ve risen dramatically, but where will they go from here, especially as the market continues to slow? 

As you think about your homeownership goals and decide if now’s the time to make your move, the best place to turn to for that information is the professionals. Here’s a summary of the latest mortgage rate forecasts from housing market experts. 

Experts Project Mortgage Rates Will Stabilize 

While mortgage rates continue to fluctuate due to ongoing inflationary pressures and economic uncertainty, experts project they’ll start to stabilize in the months ahead. According to the…

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What's Actually Happening with Home Prices Today?

One of the biggest questions people are asking right now is: what’s happening with home prices? There are headlines about ongoing price appreciation, but at the same time, some sellers are reducing the price of their homes. That can feel confusing and makes it more difficult to get a clear picture. 

Part of the challenge is that it can be hard to understand what experts are saying when the words they use sound similar. Let’s break down the differences among those terms to help clarify what’s actually happening today. 

Appreciation is when home prices increase. 

Depreciation is when home prices decrease. 

Deceleration is when home prices continue to appreciate, but at a slower or more moderate pace. 

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What Sellers Need to Know in Today's Housing Market

If you’re thinking about selling your house, you may have heard about the housing market slowing down in recent months. While it’s still a sellers’ market, the peak frenzy the market saw over the past two years has cooled some. If you’re asking yourself if you’ve missed your chance to sell your house and make a move, the good news is you haven’t – motivated buyers are still out there. But you do need to price your house right for today’s market. Here’s why. 

As Lawrence Yun, Chief Economist at the National Association of Realtors (NAR), says: 

“Homes priced right are selling very quickly, but homes priced too high are deterring prospective buyers.” 

It’s true buyer demand has slowed over the past few months as higher…

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