The graphic above reflects what took place with home values from 2022 to present day. Home prices rose dramatically in 2022 but then corrected themselves slightly (as seen in the Red). Once 2023 started, home prices started going back up again but at a steadier, healthier, and more normal rate.
WHY ARE HOME PRICES STILL HIGH???
Most people would think that with interest rates skyrocketing the way they have, that home values would come crashing down… The complete opposite took place. One of the main reasons home prices are still high is because of the lack of supply. Believe it or not there are still A LOT more buyers out there than sellers. Additionally, many homeowners took advantage of the low interest rates, when they went as low as 2.5% for a 30yr fixed mtg. Most homeowners can’t wrap their heads around losing that low of an interest rate to then purchase a home with current rates hovering around 7.5%-8%… So, most homeowners are staying put in their homes which has created a MAJOR lack of supply of homes. For the past 4 years there has already been a lack of supply of homes creating a sellers market, and now because many potential sellers have such low fixed interest rates on their homes, they have created an even greater sellers market.
There are a lot perks to selling in a market like this. One thing that may be working in your favor is how few homes there are for sale right now. Here’s what you need to know about the current inventory situation and what it means for you.
The Supply of Homes for Sale Is Far Below the Norm
When you’re selling something, it helps if what you’re selling is in demand, but is also in low supply. Why? That makes it even more desirable since there’s not enough to go around. That’s exactly what’s happening in the housing market today. There are more buyers looking to buy than there are homes for sale. Buyers have fewer choices now than they did in more typical years. And that’s why you could still see some great perks if you sell today. Because there aren’t enough homes to go around, homes that are priced right are still selling fast and the average seller is getting multiple offers from eager buyers.
So if you are interested in making a move, now is the time to get the most money for your property.
The graphic above reflects what took place with home values from 2022 to present day. Home prices rose dramatically in 2022 but then corrected themselves slightly (as seen in the Red). Once 2023 started, home prices started going back up again but at a steadier, healthier, and more normal rate.
WHY ARE HOME PRICES STILL HIGH???
Most people would think that with interest rates skyrocketing the way they have, that home values would come crashing down… The complete opposite took place. One of the main reasons home prices are still high is because of the lack of supply. Believe it or not there are still A LOT more buyers out there than sellers. Additionally, many homeowners took advantage of the low interest rates, when they went as low as 2.5% for a 30yr fixed mtg. Most homeowners can’t wrap their heads around losing that low of an interest rate to then purchase a home with current rates hovering around 7.5%-8%… So, most homeowners are staying put in their homes which has created a MAJOR lack of supply of homes. For the past 4 years there has already been a lack of supply of homes creating a sellers market, and now because many potential sellers have such low fixed interest rates on their homes, they have created an even greater sellers market.
There are a lot perks to selling in a market like this. One thing that may be working in your favor is how few homes there are for sale right now. Here’s what you need to know about the current inventory situation and what it means for you.
The Supply of Homes for Sale Is Far Below the Norm
When you’re selling something, it helps if what you’re selling is in demand, but is also in low supply. Why? That makes it even more desirable since there’s not enough to go around. That’s exactly what’s happening in the housing market today. There are more buyers looking to buy than there are homes for sale. Buyers have fewer choices now than they did in more typical years. And that’s why you could still see some great perks if you sell today. Because there aren’t enough homes to go around, homes that are priced right are still selling fast and the average seller is getting multiple offers from eager buyers.
So if you are interested in making a move, now is the time to get the most money for your property.