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Today I’m sharing my perspective on a question that I get asked nearly every day. And that is, “Will the housing market stay hot?” It’s a great question and it prompts other questions for many of us like “Is it time to buy, sell, or hold on to my property?” To make an informed decision, you’ll benefit from knowing what’s happening with the housing market and whether it will maintain its momentum. According to a housing market report released by the National Association of Realtors (NAR) in late 2021, buyer demand remains high, even though total sales dropped from the previous month. So, was that drop a warning flag?
From my vantage point the answer is probably not. You see, the NAR report also points out that properties are selling at record speeds, typically staying on the market only 18 days. Comparing this to a year ago when it typically took 29 days to sell a property, it looks like the real estate market is accelerating.What about home prices? Well, the report reveals that the median existing home sales price rose in one year by a whopping 13.5%. This is a very healthy price increase, indicating that it’s still a strong seller’s market. Here’s what this means for buyers and sellers.
When total home sales drop and yet homes are selling at record speeds and prices, the answer is very likely that more buyers are chasing fewer houses for sale. The bottom line is that total sales would have been higher had there been more housing inventory available.
For the time being interest rates remain very affordable which brings a steady stream of qualified buyers looking for homes. There are now some indications that interest rates may rise later this year. For sellers, interested in selling this year, I would urge you to not gamble on what the interest rates may be in the spring or summer. Of course listing in the winter also has a huge advantage of less competition with other homes for sale. It reminds me of a piece of advice a friend of mine often repeats: “Never leave a great party in search of a better one”. And for sellers, right now is the “great party”.
For buyers looking for a home, the market is more challenging for you in the foreseeable future. You need to work closely with a real estate agent such as myself and take a very targeted and determined approach in looking for your home. Don’t get discouraged! The perfect home for you is out there and with persistence you will find it. So it is hard to say how long the housing market will continue with its current momentum, but for now, it’s clear that owning a home is still a very important, desirable and worthy goal. If you are thinking about buying or selling a home, or just have some questions about what the market is doing in your neighborhood, give me a call. I look forward to hearing from you soon!
