The Latest on Supply and Demand in Housing

Over the past two years, the substantial imbalance of low housing supply and high buyer demand pushed home sales and buyer competition to new heights. But this year, things are shifting as supply and demand reach an inflection point.

The graph below helps tell the story of just how different things are today.

This year, buyer demand has eased as higher mortgage rates and mounting economic uncertainty moderated the market. This slowdown in demand is clear when you look at the red bar on the graph. It uses the latest data from ShowingTime to illustrate how showings (an indicator of buyer demand) have softened by just over 12% compared to the same time last year.

Now for a look at how housing supply has changed, turn to the green bar. It uses data from realtor.com to show active listings are up nearly 27% compared to last year. That’s because the moderation of demand allowed housing inventory to increase in 2022.

What Does This Inflection Point Mean for Buyers?

If you’re thinking of buying a home, you’ll have less competition and more options than you would have had last year. Enjoy having more homes to choose from in your home search and lean on a trusted real estate professional to understand how the increase in supply has also increased your negotiation power. That professional can talk you through the opportunities and challenges buyers face in today’s shifting market. You may be surprised to find they’re different than they were a year ago.

What Does This Inflection Point Mean for Sellers?

If you’re looking to sell your house, know that inventory is still low overall. That means, if you work with an agent to price your house based on current market value, it will still sell despite the inventory gains and moderating buyer demand this year. That’s because there are still buyers out there who want to move, and your house may be exactly what they’re looking for.

Bottom Line

If you’re thinking of buying or selling a home, the best place to turn to for information on today’s supply and demand is a trusted real estate professional. They’ll be able to explain what’s happening in your local market and what that means for you.

Anna Price

As the Director of Operations and Co-Leader of The Price Group, she has worked alongside her Mom Natalya Price since the very beginning. Anna is a woman of character and purpose, that is very apparent in her actions. She has a high-profile background in digital marketing and has trained over 500 real estate agents on how to best market and build their businesses. She believes success is an art form. Anna’s tenacity, perseverance and passion for real estate has made her highly respected among real estate professionals and adored by her clients. She is known for her gentle yet firm, assertive but not aggressive, and unyielding tenacious advocate for the relentless pursuit of her client’s real estate goals. Anna treasures working with clients from a variety of backgrounds and helping them achieve their real estate objectives. She truly appreciates the hard work that it takes to build a life of value and achievement, always seeking excellence. When Anna is not out in the field, you can catch her coming up with a new recipe, blogging on The Price Opinion, planning her next big trip around the world, staying current with the latest technology and striving to find the perfect cup of coffee. Anna resides in Summit with her loving family.

https://www.annapricemarketing.com
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