After more than a year of skyrocketing demand and skyrocketing home prices, the housing market appears to be cooling down. The current trends and the forecast for the next 12 to 24 months clearly show that the housing market is most likely to experience a positive appreciation in the price of housing. The housing market exploded during the pandemic, as people confined to their homes were looking for new places to live, driven by unprecedented interest rates. Over the past decade, chronic underconstruction and the influx of millions of millennials into the homebuying market have caused a significant mismatch in the supply and demand for housing.
If you're planning to sell your home, you can expect to sell it fairly quickly and close to the sale price, as long as the sale price is realistic for today's market. Homes sold in August spent an average of just 16 days on the market, and 81% of homes were on the market for less than a month. As there is increasing talk of the real estate market cooling down due to the peak frenzy it experienced during the pandemic, you may be wondering what that means for your plans to sell your house. With mortgage rates slipping out of the affordable range and home prices dropping, though not fast enough for many, many buyers and sellers aren't sure what their next move should be.
If you're ready to sell your home, contact a local real estate consultant so you can start moving. Miller said the number of contracts signed should have continued to increase until the end of May, as the spring market is usually the most active. As a result of rising mortgage rates, home values in about two-thirds of the country's main real estate markets declined last summer. While many buyers were fighting for the winning offer, home sellers witnessed a market where their properties were sold quickly and often at prices higher than the sale price.
Don't expect any deviation from that pattern this year, says Dennis Shirshikov, head of content at real estate investment site Awning. The real estate market had an incredible year last year, with unprecedented interest rates, the highest annual growth in single-family securities and rents, a generational low in foreclosure rates, and the highest number of home sales in 15 years. The housing market has been on its feet for much of the trip and continues to benefit greatly from the overall health of the economy.