The real estate market is continuously changing, and keeping up with the latest trends can be challenging. In this blog post, we'll explore the current state of the market, which is characterized by limited new listings and fast-moving homes. We'll also dive into the reasons behind these trends and how they're affecting both buyers and sellers.
The State of the Real Estate Market:
Redfin recently reported that nearly half of the homes going under contract in the U.S. are doing so within two weeks. While some people might think the market is slow, the data shows a different story. Low inventory is causing homes to sell quickly in some parts of the country. New listings fell by 21.8% from a year earlier nationwide during the four weeks ending April 2, contributing to a decline in the total number of homes for sale.
Reasons Behind Limited New Listings:
Many homeowners are choosing to stay put due to their low mortgage rates. Although average 30-year mortgage rates come down off their peaks, they're still more than double the sub-3% rates common in 2021. Redfin Deputy Chief Economist Taylor Marr explains, "Elevated mortgage rates are perhaps an even bigger deterrent for would-be sellers than for would-be buyers. Giving up a 3% mortgage rate for one in the 6% range is a tough pill to swallow."
Fast-Moving Homes:
Despite lower sales, homes that do hit the market are getting snapped up quickly. Of the homes going under contract, nearly half are doing so within two weeks, up from about one-quarter at the start of the year. It would take 2.8 months for today's supply of for-sale homes to sell at homebuyers' current consumption rate, the shortest time since September.
Market Variation:
While new listings are down in every major U.S. metro, the trend is more drastic in some areas. In Denver, for instance, sellers have the upper hand as long as their home isn't overpriced. Meanwhile, in Austin, a pandemic homebuying hotspot, buyers can take their time and have a better chance of getting a home under list price.
What This Means for Buyers and Sellers:
For buyers, the current market means they need to act fast and be prepared to make competitive offers. Sellers, on the other hand, should price their homes correctly from the beginning to attract multiple offers and sell quickly.
Conclusion:
The current real estate market is characterized by limited new listings and fast-moving homes, making it important for both buyers and sellers to understand these trends and adapt accordingly. By staying informed and making strategic decisions, both parties can navigate the market successfully and achieve their goals.