After another crazy year of record-breaking numbers for real estate, everyone is wondering the same thing: is the housing market slowing down? Media chatter of foreclosure crises and housing bubbles has dominated the news for months. There’s no denying that today’s housing market is anything but normal.
Seemingly overnight, the Millennial generation, long known for putting its buying plans on hold, was ready to become homeowners. And as more young people started buying homes, flooding cities across the country with record-high buyer traffic, there was one hang-up: there wasn’t enough inventory to match their demands.
That inequality in the market is the root cause of the price appreciation that has many worried we’re in another “housing bubble.” But unlike 2008, the rise in home values was warranted. It wasn’t price inflation. It was price appreciation caused by simple economics: a lack of supply and high demand.
Today, economists are noticing a softening in the market but nothing that should alarm potential buyers or sellers. That doesn’t mean it’s crashing. It means that it’s finally levelling out to a more normal market.
Like any other year, buyer traffic peaked in May and April (the spring market) and is slowing as summer ends. However, it’s important to note that those levels remain similar to where we were one year ago.
This is great news for both buyers and sellers. As competition slowly declines and inventory levels rise, experts project a steady softening of the steep price appreciation we’ve seen in the past year.
And as the market continues to shift, sparking confusion and hesitance across the nation, your sphere is looking to you to educate them on what it all means.
Making sure they have the full picture shows you’re a trusted real estate professional with their best interest in mind.