Here’s how we know that our real estate market is starting to cool.
Despite increased inventory, home prices have gone up for the 113th consecutive month. At the same time, all anybody can talk about is the market cooling off. This creates one big question: “Is the housing market really cooling off?”
About a month ago, I was selling a house and thought that it would be a week before I got offers on it. Then the sellers reached out and said that they needed to get it on the market ASAP because they found a new home to buy and knew it would be gone if they didn’t list right away. It had drapes and carpet that were outdated, and the home definitely needed a renovation. However, despite the market, I said let’s list it and price it correctly. Within days, we had 22 offers on the home.
I had to get in touch with 22 different agents and work those offers. It took all day and then some. It was exhausting. This didn’t look like a market that was cooling to me.
However, there are a few signs that show us that the market is actually cooling:
First, Inventory is rising. Supply has increased from where it was earlier in the year. Steady inventory is coming, and buyers are becoming very aware. They’re getting tired of overpaying and losing out to multiple offers. With more options available, buyers aren’t rushing to list like my clients were.
Much of this activity in the past year was caused by the pandemic. As we creep toward a normal market, we will start to see a cooling. There’s still time to maximize your sale price in this market while locking in a low interest rate.
If you have any questions for me, don’t hesitate to reach out via phone or email. I look forward to hearing from you soon.