Well, softening a little bit. Listing count is up and that is a good thing, but in most price ranges and market segments, buyers outnumber sellers in fair numbers. Buyers still need to bring their "A" game with offers lest they be outbid. Buyers need to understand that a house that is really nice and move in ready, modern design, etc will likely get bid up. Homes that are older or maybe a little bit of disrepair are less likely to be bid up.
As new construction ramps up with materials finally starting to retreat back on price and availability this will offer buyers options to resale homes that have been in tight supply of late. I see a soft landing in real estate over the next couple of years. As interest rates rise, which they likely will, due to aggressive spikes in inflation, real estate demand will see a slowing decline and begin to match the inventory.
Some people fear the "bubble" and that is a real thing, but to burst the bubble we would need to see a major rise in listings and I don't see that happening.
Buyers should feel secure in the decision to purchase a home, and skeptical potential sellers should see more opportunity on the buying side over the next few months which may make them feel comfortable listing their home.
Here's to a nice couple of years with modest increases in housing prices and a slow and low rate of interest rate rise.
No comments:
Post a Comment