Experts On Fall Housing Market
As we have noted in prior articles, the housing market we have gotten used to over the past 2 years is quickly changing. We saw the peak of a buyer frenzy not too long ago, and now we are quickly seeing that dynamic change. A lot of people are raising questions about the implications of changing from a seller’s market to a buyer’s market. Well, you are not alone. Many experts have started to lay out their opinions on the housing landscape and how it could potentially play out. The fall housing market is already a seasonally slower market, which could benefit buyers as more inventory will become available with less competition.
To help make a confident decision on the fall housing market, we recommend lean in on the professionals and their insights. Here are a few things experts have been talking about for both sides of the fall housing market.
Fall Housing Market: Buyers
According to a recent article from realtor.com:
“This fall, a more moderate pace of home selling, more listings to choose from, and softening price growth will provide some breathing room for buyers searching for a home during what is typically the best time to buy a home.”
And according Michael Lane, VP at ShowingTime:
“Buyers will continue to see less competition for homes and have more time to tour homes they like and consider their options.”
Fall Housing Market: Sellers
Selma Hepp, an interim lead of the Office of the Chief Economist at CoreLogic:
“. . . record equity continues to provide fuel for housing demand, particularly if households are relocating to more affordable areas.”
And from our favorite economist, Danielle Hale, Chief Economist at realtor.com:
“For homeowners deciding whether to make a move this year,remember that listing prices – while lower than a few months ago – remain higher than in prior years, so you’re still likely to find opportunities to cash-in on record-high levels of equity, particularly if you’ve owned your home for a longer period of time.”
What This Means For You
For buyers in this fall housing market, we may see a return to normalcy. For the first time since before the pandemic, there might be a chance to switch to a more neutral or buyer favored market. If this is the case, buyers will enjoy stabilizing, and even decreasing prices, more inventory, and less competition. However, the one outside factor for buyers will be the impact of mortgage rates on the real estate market. While we expect to see consistent listings coming this fall, there is a chance that listings slow too. This would largely be because of less sellers being willing to move and pay higher mortgage rates and higher prices.
For buyers in this fall housing market, we may see a little bit of reprieve in the housing demand. Seasonally, this is a slower time in the real estate market. Coming into fall, sellers need to understand the quickly changing landscape and realize that they will have to be more willing to negotiate. While the days of multiple over-ask offers and no contingencies might be over, a nice house still sells in weeks. For fall sellers, it is important to realize that your chance to sell is not over, but your chance to sell favorably might be.
Fall Housing Market
This fall housing market is likely the final step we need to return to a more sustainable housing market. While prices will likely fall MoM throughout the rest of the year, the YoY price will still remain elevated. And, looking back 5 years, most homes are up close to 60% in all areas. That leaves room for price drops and reductions due to the immense demand finally fizzling out. The fall housing market will likely be a normal, neutral market which is good for buyers and sellers both.