The record low housing shortage that we experienced due to the pandemic might be turning around due to the surprising numbers that June showed. Sellers are starting to feel more comfortable about putting their houses on the market which means the heat of the market might start to cool down a bit.
According to Realtor.com, new listings in June increased 5.5% year over year and 10.9% compared with May.
With more houses coming on the market, buyers should start to feel better about actually getting a house. The chances of multiple buyers on one house and the prices of homes should start to decrease as more homes enter the market. The other side of more homes being on the market means there will be more competition for sellers.
This could mean trying to price their home accordingly. Pricing a home for competition might mean lowering the price to attract more buyers but it could sway the other way where the sellers might price their home higher to get more money.
The number of houses on the market are still historically low compared to the average for this time of year before the pandemic. But it will take a while for the market to recover from the pandemic so any increase in the number of homes is good.
New listings usually decrease in the summer after a busy spring market, which is why an increase in listings in June is surprising, but you must remember that the market is completely different than any other year due to the pandemic. The usual highs and lows cannot even be compared to 2020 and 2021 because of that.
Mortgage rates are projected to start increasing which will make buying a home less affordable so take advantage of the record low mortgage rates and more homes on the market to finally buy one.
The fear of trying to buy a home in this market and potentially being outbid or being put in the middle of a bidding war is frustrating but as more houses become available, the hope is that there will be less offers on one home.
Whether you are planning on buying or selling a home, contact your local real estate agency for assistance!