Is the market Fall-ing too?

Every newspaper, magazine, and website is filled with articles about how the housing market is plummeting to the ground. Let's start off by taking a deep breath and saying - this is not the case. The sellers’ market we’ve seen in the past 2 years has been astounding due to factors no one saw coming on top of the normal trends. What we are seeing now is a path toward a market correction. However, it is hard to ignore the rise in inflation and how it affects costs of goods, services, and even the stock market. If you are questioning if this is still a good time to sell, allow us to help you out!

Should I wait to sell?

Low inventory was one of the top reasons the post pandemic market was so hot. Even though there are more homes for sale today than there were at this time last year, inventory is still low. A sellers’ market is classified by having less than 6 months of inventory. As of September, we have 3.2 months of inventory, well below 6 months. That means it’s still a sellers’ market! 

Are buyers still out there?

While moderating compared to the frenzy in 2020 and 2021, showing activity (an indicator or buyer demand) is moving back toward pre-pandemic levels - and those were great years in real estate. Even still, buyer demand is still quite a bit higher than it was back then. There are still plenty of buyers looking among a small pool of homes available.  

But could I afford my next home?

Homeowners have gained significant equity over the past few years. You can use that equity to help power your next move. “The total average equity per borrower has now reached almost $300,000, the highest in the data series,” according to CoreLogic. Not to mention, homeownership is historically a great hedge against inflation. In an inflationary economy, prices rise across the board. Historically, homeownership is a great hedge against those rising costs. While the economy might be unpredictable, using your existing home equity to find your next home and locking in your largest monthly payment is a welcome comfort! 

If you want to discuss your opportunities in the housing market, whether they be buying, selling, investing, or just curiosity, reach out today! We are always eager to explore each person’s individual situation and what that might bring them.

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