Whether it’s at a family gathering, your company party, or catching up with friends over the holidays, the housing market always finds its way into the conversation. It’s a topic that touches everyone, whether they’re actively looking to buy or sell, or just curious about the economy.
This season, amidst the festive cheer, you might find yourself fielding or asking some common questions about real estate. To help you feel more confident and informed, here are the top three questions on a lot of people’s minds right now, along with straightforward answers from The Audra O’Neal Team.
1. “Will I even be able to find a home if I want to move?”
Yes, more than you could a year or two ago.
For a while, it felt like searching for a needle in a haystack, didn’t it? The good news is, the inventory shelves aren’t nearly as bare as they once were. The number of homes for sale has been steadily rising over the past few years. According to data from Realtor.com, we’ve seen more than one million homes on the market for six straight months. This hasn’t happened since 2019!
What does this mean for you?
- Buyers have more options: You’re not limited to a handful of listings, giving you more choices to find a home that truly fits your needs and preferences.
- Sellers have more places they can move to next: If you’ve been hesitant to sell because you worried about finding your next home, the increased inventory should bring some peace of mind.
Many homeowners who previously held off on their plans are now realizing that the market offers more opportunities. So, if you paused your home search last year because nothing quite fit, it may be well worth another look. With more homes on the market now, you have more space to breathe, more options to compare, and a little more time to make a confident decision, rather than feeling pressured to jump on the first available property.
2. “Will I ever be able to afford a house?”
Affordability is starting to improve. Finally.
It’s been a tough few years for buyers, with rapidly rising prices and interest rates making homeownership seem out of reach for many. However, this year brought some much-needed good news:
- Mortgage rates have been easing. While they’ve seen some fluctuations, the general trend has been towards more favorable rates.
- Home price growth has been moderating. We’re seeing a more sustainable pace of appreciation, rather than the sharp increases of previous years.
Together, these factors add up to a monthly mortgage payment that’s potentially hundreds of dollars lower than it would have been just a few months ago. While buying a home still requires careful planning and financial preparation, the numbers are undeniably starting to improve. For a lot of people, this means that buying a home is becoming a more realistic and achievable goal again.
3. “Should I wait for prices to come down?”
A common worry for many is that the housing market is on the brink of a crash, similar to what we saw in 2008. However, the data doesn’t point in that direction. Yes, the number of homes for sale has been rising, but it’s still nowhere near the level needed for prices to fall significantly on a national scale. On top of that, homeowners today have a lot of equity and are in a much stronger financial position than they were back in 2008. The underlying economic conditions are simply different.
Of course, every local market is a little different. Some areas are still seeing prices climb, while others that saw huge spikes a few years ago are leveling off or seeing small corrections. But overall, the national picture is clear: experts surveyed by Fannie Mae project home prices will continue to rise, just at a slower, more normal pace.
That’s why waiting for a major price drop to get a “deal” isn’t a very strategic plan. History shows the same thing over and over: people who spend time in the market tend to build the most long-term wealth, not the people who try to time the market perfectly and risk missing out on appreciation.
Bottom Line
Talk about the housing market can feel loud and confusing, especially when you’re hearing so many different takes from friends, family, and the media. It’s easy to get caught up in the hype or the fear. The Audra O’Neal Team can help you make sense of the data, understand the nuances of your specific market, and provide personalized insights into your options. If you’re thinking about buying or selling, or simply want to understand how these trends might impact your future, don’t hesitate to reach out to a local professional. We’re here to help you navigate the market with confidence.
