The housing market over the last few years has been a particularly poignant source of conversation and, in some cases, concern. The effects of the global COVID-19 pandemic have had the United States in a vice grip, with varied results. Now that the pandemic is no longer at the forefront of everyone’s minds and people are returning to their normal lives, it’s interesting to see how these years of fear and isolation have affected the housing market.
First, it’s widely forecasted that buyer and homeowners alike will see a housing market more in line with the typical spring season. Last year at this time, the pandemic was still in full swing and homeowners were less inclined to sell. With interest rates ever-increasing, it makes sense. Why would most homeowners willingly choose to abandon their fixed-mortgage rates for something more expensive during such a volatile period in history? Of course, this led to a massive imbalance between supply (which was relatively low) and demand. Homes that were listed on the market sold quickly, often leading to bidding wars between potential buyers that caused prices to skyrocket. Those who decided to list their homes were rewarded with a seller’s market and a tidy sum of money.
This year, the seller’s market continues, though it won’t be quite as severe as it was in 2021. Whether you’re a potential buyer or a current homeowner or both, consider the following before you jump in:
- Home prices are expected to continue rising. They won’t inflate quite as much or as quickly as they did last year due to low demand, but don’t wait around for a market crash any time soon.
- The real estate market is based on local comps. While the national average is a good overall indicator, do some research in your area. The prices can vary wildly in either direction, and you may find yourself with a bargain on your hands.
- A national shortage of labor and construction supplies is another reason for the low supply on the real estate market. If you’re listing a house, be sure to schedule any necessary construction or repairs far in advance.
- Hire a real estate agent that knows the local market. They will be invaluable throughout the entire process, whether buying or selling.
The housing estate market has had its ups and downs, but there’s never been a better time to find your dream home. The world is returning to normal, and it’s time to get back to business. Follow the Talley Properties blog for more tips, tricks, and insights into the real estate market.