home affordabilityJennifer Sullivanmarket analysismarket updatemortgage September 15, 2022

A Return To Normalcy

Mortgage rates are much higher today than they were at the beginning of the year, and that’s had a clear impact on the housing market. As a result, the market is seeing a shift back toward the range of pre-pandemic levels for buyer demand and home sales.

“This transition back toward pre-pandemic levels isn’t a bad thing,” says Jennifer Sullivan, Sales Associate at ERA Justin Realty, “In fact, the years leading up to the pandemic were some of the best the housing market has seen. That’s why we need to compare today’s return to normalcy to 2019 – and remember 2020 and 2021’s high home prices and low mortgage rates were abnormal due to the pandemic.”

Higher Mortgage Rates Are Moderating the Housing Market 

Buyer demand is starting to come down now that mortgage rates are starting to rise. “This isn’t a bad thing either,” says Jennifer Darby Metzger, Broker/Owner of ERA Justin Realty, “The higher rates are moderating the real estate frenzy, meaning you’re less likely to wind up in a bidding war and more likely to get the home you want.”

Higher Mortgage Rates Mean More Time

The higher mortgage rates are also slowing down the frenzied pace of home sales. “This means you can take your time now and look, not just jump on the first house you can afford, for fear of missing out,” says Sullivan. 

Why is this Good News for You?

All of these factors are opening up a window of opportunity for both first time home buyers and those looking to sell and move. As demand moderates and housing prices level off, home inventory is able to grow giving you more options in your home search.  So, don’t let the headlines about the market cooling scare you. It’s a good thing.

For help buying or selling a home, call Jennifer Sullivan or any of the experienced professionals at ERA Justin Realty at 201-939-7500.