The housing market is finally starting to level out, and people are feeling cautiously optimistic.
Right now, with the rate of increased prices finally slowing but still steadily rising, buyers and sellers may find themselves both getting what they want for the first time in nearly two years since the pandemic began.
A recent article from RISMedia quotes Dr. Lynn Fisher, deputy director of the Federal Housing Finance Agency (FHFA), saying that although annual house price gains remained “extremely high” in August, the pace of month-over-month gains is starting to slow down.
However, that doesn’t mean that home prices are at risk of declining — which is still great news for anyone looking to sell their home.
To prove that point even further, Dr. Lynn Fisher adds that house prices are continuing to climb at a “double-digit pace in all regions,” which not only benefits sellers and their listing agents but is also a great sign that the economy is improving overall.
What This Means for Homebuyers
For homebuyers, a slight decrease in average listing price may not sound like much, but the good news is that the peak in annual gains is likely over for the moment. In theory, this could make it a bit easier for some potential buyers to jump back into the market.
In fact, while some might worry that a slow-yet-steady decline in listing price might mean we’re headed towards a “market crash,” it’s much more likely that the market will simply sway in favor of buyers who have been waiting anxiously for almost two years to buy — although it might not be as quick as many potential homebuyers would hope.
Still, as Millennials finally reach their peak home-buying years and begin to rebound from a slow start to enter the housing market in general, it’s reasonable to assume that it won’t take much more of a decrease in the average listing price to see more Millennials leveraging the opportunity.
What This Means for Sellers
Sellers still technically have the upper hand in the market, and there’s still a very limited amount of inventory available for prospective homebuyers.
Even though the average listing price is slightly decreasing, sellers in most areas around the country can still expect enough demand to close at or very near their listing price if their home is priced accurately — and they can still expect to close quickly since the average amount of days on market is still fewer than last year.
Plus, real estate is still expected to appreciate faster than usual through the end of the year, so prospective sellers who are on the fence about listing still have some time to decide without taking a big loss.