Does the latest news about the housing market have you
questioning your plans to sell your house? If so, perspective is key. Here are
some of the ways a trusted real estate professional can explain the shift
that’s happening today and why it’s still a sellers’ market even during the
Fewer Homes for Sale than Pre-Pandemic
While the supply of homes available for sale has increased
this year compared to last, we’re still nowhere near what’s considered a
balanced market. A recent article from Calculated Risk helps put this year’s
increased inventory into context (see graph below):
It shows supply this year has surpassed 2021 levels by over
30%. But the further back you look, the more you’ll understand the big picture.
Compared to 2020, we’re just barely above the level of inventory we saw then.
And if you go all the way back to 2019, the last normal year in real estate,
we’re roughly 40% below the housing supply we had at that time.
Why does this matter to you? When inventory is low, there is
still demand for your house because there just aren’t enough homes available
Homes Are Still Selling Faster Than More Normal Years
And while homes aren’t selling as quickly as they did a few
months ago, the average number of days on the market is still well below
pre-pandemic norms – in large part because inventory is so low. The graph below
uses data from the Realtors’ Confidence Index by the National Association of
Realtors (NAR) to illustrate this trend:
As the graph shows, the pre-pandemic numbers (shown in blue)
are higher than the numbers we saw during the pandemic (shown in green). That’s
because the average days on the market started to decrease as homes sold at
record pace during the pandemic. Most recently, due to the cooldown in the
housing market, the average days on the market have started to tick back up
slightly (shown in orange) but are still far below the pre-pandemic norm.
What does this mean for you? While it may not be as fast as
it was a couple of months ago, homes are still selling much faster than they
did in more normal, pre-pandemic years. And if you price it right, your home
could still go under contract quickly.
Buyer Demand Has Moderated and Is Now in Line with More
Buyer demand has softened this year in response to rising
mortgage rates. But again, perspective is key. Getting 3-5 offers like sellers
did during the pandemic isn’t the norm. The graph below uses data from NAR
going back to 2018 to help tell the story of this shift over time (see graph
Prior to the pandemic, it was typical for homes sold to see
roughly 2-2.5 offers (shown in blue). As the market heated up during the
pandemic, the average number of offers skyrocketed as record-low mortgage rates
drove up demand (shown in green). But most recently, the number of offers on
homes sold today (shown in orange) has started to return to pre-pandemic levels
as the market cools from the frenzy.
What’s the takeaway for you? Buyer demand has moderated from
the pandemic peak, but it hasn’t disappeared. The buyers are still out there,
and if you price your house at current market value, you’ll still be able sell
your house today.
If you have questions about selling your house in today’s
housing market, let’s connect. That way you have context around what’s
happening now, so you’re up to date on what you can expect when you’re ready to