Over the last two years we’ve been seeing multiple offer situations, extremely low inventory, highly priced homes and low mortgage rates. There may be some good news for buyers just up ahead. So it is a seller’s market or a buyer’s market - lets first look at the difference between the two.
Seller’s Market - This means that the demand for homes is high. There are far more buyers looking for a home than there are sellers selling.
Buyer’s Market - In a buyer’s market, homes take longer to sell. You can view several listings, let the information marinate and then decide if any are right for you. It’s not drafting an offer while you’re viewing a home. Quite simply, there are more houses for sale than buyers willing to buy.
So what does that mean for today’s housing market? Right now, we are seeing some subtle indicators that a calming market may eventually transition into a buyer’s market. As always though, time will tell.
More Availability - In Q2 of 2021, homes were only on the market for 22 days with a 1.1 months supply of homes. And get this, the median price in DFW was $350,000. In Q2 of 2022, we’re seeing 1.8 months of supply and the median price has risen to $425,000. (Texas Realtors Market Viewer)
Price Reductions - Don’t let the median prices fool you. While we are still trending on higher home prices, many times and recently, sellers are having to drop their home prices in order to sell. The reality of the slowing market hasn’t caught up to sellers who are hoping for the highest price!
Mortgage Applications are Declining - With the increase in interest rates, buyer’s apprehension is a real feeling. Many buyers are having to adjust their budget to accommodate these new rates. So for buyers with a little deeper pockets, it’s a great time to get into a home. With the greater supply and the fewer buyers out there, they will have more leverage with the sellers.
It’s been a rough road for buyers these past couple of years. Seller’s markets do eventually have an end and time will be the one to tell us when that switch happens.
If you’re on the market for a new home, reach out and let’s start looking today!