By Michael Ardolino
In past columns, I’ve mentioned how it’s important to keep an eye on real estate trends when deciding whether to sell your home. There are some slight changes, but once homeowners know all the information, they’ll find fall is looking good.
It’s still a sellers’ market
The housing market may be cooling slightly as temperatures dip, but it’s still the time to sell.
Odeta Kushi, First American Financial Corporation’s deputy chief economist, recently commented on the current housing market. “We are seeing some signs of softening in the housing market, but context is important here … We’re still very much in a sellers’ market, but we are seeing some early signs of softening.”
Earlier in the year, the real estate market saw record-low inventory which meant homes were selling for more than they would have been just a couple of years ago. Over the last few months, inventory has grown slowly, and there are fewer buyers out there.
Data from the real estate technology firm OJO Labs confirms that the housing market continues to be competitive. The firm’s data shows that 49.6% of homes sold for more than the initial list price in July. In July 2020, it was 26.8%.
One of the most important things to know in the housing market is the definition of “months supply.” The term means the number of months it would take for the current inventory in the housing market to sell. The current sales pace is the main factor. The rule of thumb is six months of supply equals moderate price appreciation. When listings are low, prices go up.
Looking to the future
Many experts have said sales were slowing down because of a lack of supply. The strong demand is still there, and lately there has been an increase in listings. However, more homes on the market are still needed.
Danielle Hale, chief economist for realtor.com, has said, “If these changing inventory dynamics continue, we could see a wave of real estate activity heading into the latter part of the year.”
For the fall, experts are expecting a busy season. More sellers are putting their homes on the market which is something we normally see in the spring.
Tune in to the news
Federal Reserve Chairman Jerome Powell and Treasury Secretary Janet Yellen appeared before a Senate panel Tuesday, Sept. 28. They testified in a hearing about economic recovery. The overall economy, which has shown signs of slowing, affects the real estate market, and we’ll talk more about this in next month’s column.
When deciding on selling or buying a home, timing is everything, and trends and staying on top of financial news can help you make the right decision for you and your family. I’ll be keeping on top of the trends and financial news for you. So … let’s talk.
Michael Ardolino is the Founder/Owner-Broker of Realty Connect USA.