4 truths about the housing market right now
2023 has been an interesting year for all of us in real estate, and we’ve had to do plenty to navigate the changing market. Our team knows there’s still more work to do as fall approaches, but this article from the National Association of REALTORS® recently shared some observations that can help. So, we’re sharing some of the main takeaways with you.
1 – We need to separate fact from fiction. There’s a lot of negativity about the housing market right now, but it can still be a great time to buy or sell individual homes. Interest rates are still making big headlines, but there are signs they’ll moderate in the near future. Plus, consider these findings from the NAR: listings today are still attracting more than three offers before being sold, and about a third of homes on the market nationwide are selling above list price. This year has been challenging, but it hasn’t been as gloomy as many would like you – and the public – to believe.
2 – New construction homes are filling the inventory void the best they can. We’ve talked about how new construction builds should be a consideration for today’s buyers, and that’s still true. Inventory will remain an issue. Sales of new builds typically make up about 10% of all sales per year, but are running higher than that this year, and will likely be elevated in 2024 as well.
3 – Our buyers and sellers are getting older. Times are changing! The average age of a first-time homebuyer now stands at 36, indicating delayed entries into homeownership compared to previous generations. But here’s the real clincher—baby boomers have taken the lead over millennials as the dominant homebuying force. Equipped with years of housing wealth, boomers are reshaping the market with their preferences, from “forever homes” to smart homes. We all must understand these generational nuances better to craft more effective strategies for attracting and working with our customers.
4 – Housing prices are expected to stay steady. As the market slowed, there was plenty of conversation for both buyers and sellers about whether home prices would decline. That doesn’t seem to be the case so far, which is good news for sellers and something potential buyers should keep in mind. The truth is there’s no way to time the market right now. Consider this quote from NAR’s Lawrence Yun.
“The long-term perspective is that housing has brought great wealth accumulation for homeowners,” even those who have purchased in the last two years,” he said. Further, home prices remain higher compared to a year ago in practically every U.S. market. NAR has forecasted home prices to rise by 2.6% in 2024.”
No matter what happens the rest of the year, stay informed, be adaptable, and keep being awesome for those relying on your expertise the most. Thank you for continuing to choose our teams as your title and escrow provider.