For those just starting their lives, the past two years have been a nightmare. Inflation, an extreme and unreasonable housing market and an uncertain jobs market have put more than a few dreams on hold.
However, the last two months have been throwing off signals that the housing market is starting to shift in the buyer's favor - slowly - and it begs the question: is it time to buy? Here's what you need to know about whether or not it's time to bring your real estate dreams to life. Ma
Housing Market is Moving into Balance Between Buyers and Sellers
Maybe you're in your 20's and looking to buy your first home. Maybe you're a millennial who finally has some financial cushion and you're ready to jump into real estate. Maybe you're retired and need to move out of the increasingly expensive urban hub you once called home. Everyone has their reasons for wanting to buy.
But buying in 2021 was a fraught experience and it left many holding a much more expensive bag than they expected, with far less to show for it. A seller's market, the past year's housing prospects were absurd.
Now, however, things appear to be cooling off.
Barrons writes, "For the first time since the early days of the pandemic, homes for sale in the U.S. spent more time on the market than the year before. It’s the latest evidence of balance returning to a housing market that has spiraled furiously forward.
During the last week in July, the median home sat on the market one day longer than the same week a year ago, weekly Realtor.com data show. While one day might not sound significant, it was the first time the weekly metric has increased since June 2020.
'We finally hit the turning point,' says Realtor.com chief economist Danielle Hale."
Across the nation, homes are now sitting on the market on average for 35 days. That's short of the 50-day average from 2019, but far longer than last July's 19 day average.
Florida is one exception to the housing cool off, and cities like Miami and Orlando are seeing homes still fly off the market as people flock to the Sunshine State.
A massive hike in federal interest rates and a lack of buyers able to pay significantly over asking to secure a home have led to the rush to buy cooling off.
While home prices are continuing to rise, it's likely that the new trend signals a shift towards a buyer's market; good news for those who have been holding their breath and waiting.
The Pandemic Remote Work Effect
Another reason why the market is starting to show signs of cooling is because people are no longer forced to buy in their immediate region. With remote work on the rise, a commute is no longer top on many people's priority list.
Good internet infrastructure is likely to be the most important component for remote workers who now find themselves able to work anywhere in the nation.
It's a huge sigh of relief after a year of hot housing battles over limited inventory. Those who are holding onto homes they bought during the height of it shouldn't panic though. It's unlikely that your house's value will fall much - if any - so even though you paid more than you expected, you probably won't regret it even if housing prices cool off. Experts suggest that there may be a momentary drop, but like long-term stocks the value should recover.