Capitalize on Today's Limited Housing Inventory

Wondering if now is the right time to sell your house? The answer remains a resounding yes! Especially when you consider the current scarcity of available homes for sale.   Current Scarcity While you may have heard about the low inventory situation, the true extent and benefits for potential sellers might not be fully apparent. Referencing an illustrative graph from Calculated Risk can provide clarity: Observing the graph, you'll note a slight week-over-week growth in housing inventory (indicated by the blue bars). However, the broader view reveals a persistently limited supply (the fiery red bars). Compared to the same period last year, there's been a notable 10% decline in supply – and remember, it wasn't exactly abundant even then. Expanding our scope further back emphasizes an even more pronounced decrease in available homes. Let's turn back the clock to 2019, often considered a benchmark for a balanced housing market. Comparing this year's available homes with the equivalent week in 2019 reveals a striking difference. We're talking about a significant 50% drop in supply. Essentially, there are only half as many homes available compared to a typical scenario. The main takeaway is clear: the market is far from achieving equilibrium. Demand for houses remains robust, yet the available supply falls significantly short. As Lawrence Yun, Chief Economist at the National Association of Realtors (NAR), explains: “There are simply not enough homes for sale. The market can easily absorb a doubling of inventory.”   Hidden Potential If you're contemplating listing your house, here's the exciting part: you're stepping into the spotlight with only about half the usual homes to compete against. This is your time to shine, potentially leading to multiple offers and a swift sale.   With available homes hovering at around half of what's considered normal, the demand for your property is practically assured. Ready to take the next step? Establish a connection with a local real estate agent without delay. Your house is poised to take center stage in this low inventory scenario – seize the opportunity to its fullest!

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Housing Market Forecast for the Rest of 2023

As we move into the latter half of 2023, the housing market remains a focal point of interest for homeowners, buyers, and investors alike. The past year has been marked by fluctuations and uncertainties, but what lies ahead for the real estate sector? Let's dive into the expert forecasts and examine what we can expect for the rest of 2023.   Home Prices: A Positive Growth Trend The housing market's pulse is often measured by changes in home prices. As we look ahead, it's evident that the direction of home prices will vary by local market. However, the overall trend shows a positive growth trajectory. Numerous experts have weighed in with their predictions, and the average of their forecasts suggests that we can expect a 0.7% increase in home prices for the remainder of the year. Here's a breakdown of the latest price growth forecasts from prominent entities: Fannie Mae: 3.9% MBA (Mortgage Bank Association): 0% NAR (National Association of Realtors): -0.4% Realtor.com: -0.6% Average: 0.7%   Mortgage Rates: Cooling Off with Inflation The dynamics of mortgage rates are intrinsically linked to inflation trends. As we progress through the latter part of 2023, experts anticipate that mortgage rates will ease due to the cooling off of inflation. Let's take a closer look at the projected mortgage rates for both the third and fourth quarters of 2023: Quarter 3 of 2023: Fannie Mae: 6.8% MBA (Mortgage Bank Association): 6.6% NAR (National Association of Realtors): 6.5% Average: 6.63% Quarter 4 of 2023: Fannie Mae: 6.6% MBA (Mortgage Bank Association): 5.9% NAR (National Association of Realtors): 6.3% Average: 6.27%   Home Sales: A Steady Pace Despite Low Inventory One of the persistent challenges in the housing market has been the issue of low inventory. However, experts remain optimistic about home sales for the year. Despite the challenges, they project that around 5 million homes will still be sold in 2023. Here are the total home sales forecasts for 2023 in millions, as per expert estimates: Fannie Mae: 4.9 million MBA: 5 million NAR: 5.1 million Average: 5 million   The housing market in 2023 has shown resilience, with positive price growth predicted by experts in many areas. While mortgage rates may fluctuate, the historical trend suggests they are likely to ease in line with cooling inflation. Additionally, even with low inventory posing challenges, the projected sales figures for the year indicate a steady pace of transactions. Whether you're a homeowner, buyer, or investor, staying informed about the housing market is crucial. As we continue through 2023, keeping an eye on local market trends and national forecasts will help you make informed decisions in this dynamic real estate landscape.

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The Frenzy Is Over But Buyer Demand Remains Strong

In the ever-evolving housing market, 2023 has brought about significant changes, but homebuyer activity remains surprisingly strong. Despite a slowdown from the previous year's record-breaking surge, buyers are actively touring properties, reflecting a gradual return to a more balanced real estate landscape.   Understanding Seasonality in Real Estate To grasp the current situation better, let's examine the concept of seasonality in real estate. In previous normal years (depicted in gray), buyer activity typically peaked during the first half of each year, coinciding with the popular homebuying season in the spring, before gradually tapering off towards year-end. The onset of the pandemic in 2020 (shown in blue) disrupted this pattern, leading to uncertainty in the market. Subsequently, we entered the "unicorn" years of housing (in pink), marked by historically low mortgage rates and soaring buyer demand. Even during this extraordinary period, seasonal trends persisted, albeit at much higher levels.   The Present Scenario Now, in 2023, while buyer traffic has decreased from the previous month and the peak experienced during the "unicorn" years, it is essential to recognize that this is not a dramatic decline in demand. Rather, it signifies a gradual return to a more normalized seasonality. As the ShowingTime report explains: "Showing traffic declined about 10% in May... This follows a typical seasonal pattern – disrupted by the pandemic but now beginning to return." Zooming in on May data from the last five years further emphasizes the continued strength of buyer demand.   What This Means for Homeowners Homeowners should take note that buyers are still actively searching for properties. In comparison to May 2022, when higher mortgage rates led to a momentary slowdown, and even the last normal years, buyer activity remains resilient today. It's essential to recognize that this activity could be even higher if not for the limited supply of homes for sale. As noted by U.S. News: “Housing markets have cooled slightly, but demand hasn’t disappeared, and in many places remains strong largely due to the shortage of homes on the market.”   Seizing the Opportunity The current market conditions present an opportune moment for homeowners considering selling their properties. With eager buyers actively looking, connecting with a real estate agent can help you navigate the selling process and get your property in front of potential buyers.   While the housing market may have adjusted from the "unicorn" years, buyer demand remains robust. Homeowners should stay proactive and make the most of this favorable time to sell their homes. By connecting with a trusted real estate agent, you can capitalize on the strong buyer activity and secure a successful sale in today's dynamic market.

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