Is the Market Correcting Itself? – If you are following news headlines about the real estate market across the country you may be wondering when this crazy market will be headed in the other direction. You may be left with more questions than you have answers to. Will this boom eventually explode? Will the market crash or correct?
Is the Market Correcting Itself?
Here is your best insight into what is happening in the market currently – Is the Real Estate Market Correcting Itself?
Compared to what has happened over the last two years the housing market is beginning to calm down a little bit. The important thing to remember is that the last two years as far as the real estate market is concerned were record-breaking in several different areas.
One of those big driving records included the lowest mortgage rates anyone has seen in their lifetime. Another driver was the large influx of the millennial generation reaching traditional peak homebuying ages bringing another reason for a large interest in buying. All of this coupled with a very low number of homes for sale led to a record-breaking real estate market like we have never seen.
The record-high numbers of demand and increase in prices over a short time paired with the very low number of homes for sale were clearly not sustainable in a long term. The most recent market numbers are pointing to stabilization. Many expect the state of the market to look more like it did before the pandemic began. There is no crash expected and no huge correction swinging to the buyer’s market end of the pendulum.
Related: Mortgage Rates Have Jumped – Should You Still Buy?
How Home Showing Numbers Can Give Insight
The ShowingTime Showing Index offerings a tracking system for the number of home showings conducted as reported through real estate agents and brokers. It helps to indicate the current buyer demand for homes. In 2019 before the pandemic home showings were pretty steady. At the beginning of the pandemic home showings dipped down as in-person visits were not possible and then they skyrocketed well above numbers from 2019.
Now numbers are showing that home tours are beginning to remain steady instead of increasing. Home showings are still currently well above the numbers from 2019. The market in 2019 was strong helping to further show that the real estate market remains strong and is not headed for a crash.
Looking at Home Sale Numbers
News headlines have been sharing that current home sale numbers have also begun to decline. The key is to see this from the right perspective. The National Association of Realtors has shared data that shows home sales though less than they were a few months ago are still well ahead of numbers for this same time in 2019 when the market was more balanced yet strong.
To get a full picture of if the real estate market is truly headed for concerning times you need to compare the current numbers with that of a “normal” strong year in real estate. The housing market is beginning to look more like what we saw in 2019 than what we lived through in 2008.
For more information on the market and if the market correcting is a good thing in St. George real estate contact me any time.
