Why Is the Housing Market Shifting?
More Inventory
In 2020, housing inventory dropped dramatically due to the COVID-19 pandemic and continued falling to all-time lows. However, we're finally starting to see an influx of new listings hit the market, which could lead to more competition amongst buyers, as well as a long overdue price adjustment.
Slower Price Growth
Since summer, the housing market has seen home prices grow at a slower rate than before. Right now, prices have reached their peak—and many experts are predicting that they won't climb much higher than they are now. In fact, they might actually get lower as the market continues to shift.
Buyer Fatigue
Over the last year, it wasn't uncommon for buyers to offer tens of thousands over asking price, waive contingencies, and bend over backwards for the perfect home. But as more inventory becomes available, home-seekers might not be willing to go above and beyond for much longer.