If you’re following all the news lately about inflation, housing costs and interest rates, it could leave you with more questions than answers. Is the boom over? Is the market crashing or correcting? Here is what you need to know.
“The housing market is leveling off compared to the spikes of the last two years,” says Grace Tirrito, Sales Associate at ERA Justin Realty, “But what everyone needs to remember is the past two years were unprecedented in nearly every way.”
Mortgage rates reached record-breaking lows. Millennials came of home buying age and created an influx of buyer demand. And on top of that, there were not enough homes on the market to satisfy all the buyers due to years of under-building combined with older sellers who held off listing due to the pandemic.
“This combination led to record-high demand and record-low supply,” says Jennifer Darby Metzger, Broker/Owner of ERA Justin Realty, “Now we are starting to see a shift back to a more sustainable housing market. So, it’s not a crash nor a correction.”
The number of monthly home showings nationwide indicate buyer demand is still high, despite rising mortgage rates. Home tours skyrocketed during the height of the pandemic in 2020 and 2021. 2022 is so far lower, but still high compared to 2019. Home sales nationwide are at similar levels, not as high as 2021, but not back down to 2019 levels yet.
“It’s important to remember not to compare the market today to the abnormal circumstances of the pandemic years,” says Tirrito, “Today’s market looks a lot like 2019, which was actually a very strong year for real estate, it just doesn’t look like it in the shadow of 2020 and 2021.”
If recent headlines about the future of the housing market are creating concerns about whether it is the right time to buy or sell, an experienced real estate agent can help you put current events in context. This is not a crash nor a correction, but rather a return to more typical market conditions. If you have questions about your local market, contact Grace Tirrito or any of the professionals at ERA Justin Realty by calling 201-939-7500.