Things are rapidly shifting in the housing market and causing a high level of uncertainty — but there is also a plethora of misinformation circulating. Here’s what you need to know about whether the market is correcting based on data from seasoned economists.
Compared to the last two years, the housing market is indeed moderating. But what must be taken into account is that for the last two years, the housing market has been highly abnormal thanks to factors like record-low mortgage rates, an incredible surge in buyer demand, and lack of inventory. There was no way this combination was going to be sustainable long term; hence our current market.
The most recent data points to a shift back to market levels seen in the years leading up to the pandemic, which are reflective of a more balanced state — neither a crash or a correction.
"The housing market is at a turning point…we’re starting to see signs of a new direction." ~ Realtor.com
The most important thing to keep in mind is that we should be comparing today not with the abnormal pandemic years, but with the most recent “normal” year, which was 2019.
“…today’s housing market looks a lot like the 2019 housing market, which was the strongest housing market in a decade at the time.” ~ First American
Despite panic-inducing headlines about an upcoming market crash, all the actual numbers point to the market turning toward more typical pre-pandemic levels. Your best bet going forward as a buyer or seller? Partnering with a knowledgeable agent who deeply understands the market dynamics at play.
Contact Gary, your local real estate specialist, today to get started.
Source: Keeping Current Matters