At Extreme Investor Network, we are always staying ahead of the latest trends and developments in the real estate market to help our readers make informed decisions. In a recent market report by Zillow, it was highlighted that more homeowners are listing their homes for sale, but properties are taking longer to sell due to high prices and interest rates. This shift in the market dynamics presents both challenges and opportunities for buyers and sellers alike.
According to Orphe Divounguy, a senior economist at Zillow, there has been a 13% increase in new listings from home sellers compared to the previous year. However, with buyers not returning to the market at the same pace, the number of homes on the market has risen by 22%, leading to longer days on the market for properties. As a result, almost two-thirds of homes listed in May had been on the market for at least 30 days without going under contract, indicating a slowdown in the market.
Despite the recent increase in supply, there is still a significant shortage of inventory in the for-sale market, with housing inventory in the U.S. being 34% below pre-pandemic levels. This shortage is causing homebuyers to wait for lower mortgage rates before entering the market, as high rates continue to strain household finances.
Daryl Fairweather, chief economist at Redfin, highlighted that buyers are facing high mortgage rates relative to the pandemic period, making it challenging for them to make a purchase. While mortgage rates may fluctuate, buyers should be prepared for limited movement in the near term, as the Fed anticipates only one rate cut this year.
For buyers and sellers navigating the current market conditions, there are key considerations to keep in mind. In markets with a surplus of inventory, such as Dallas, Fort Lauderdale, Tampa, and Jacksonville, buyers have more bargaining power and may be able to negotiate a lower price. On the other hand, in markets where inventory remains tight, sellers may need to be prepared to adjust their asking price to attract buyers.
Whether you are a buyer or a seller, it is essential to stay informed about market trends and be strategic in your decision-making. At Extreme Investor Network, we provide valuable insights and expert advice to help you navigate the evolving real estate landscape with confidence. Stay tuned to our blog for more updates and tips on personal finance and investment strategies.