MINT HILL, NC – Even before the pandemic, the housing market favored the seller and was pretty hot. However, the pandemic caused the market to shift rapidly and it may be coming back to pre-COVID levels now.
Due to a plunge in inventory and a lack of building supplies, home prices have skyrocketed over the past year or so. This is particularly true for the lower end of the market. While the housing market is certainly not coming back to earth right now, some believe we may have reached the peak.
Good News from the Summer
The good news for the housing market is the rise in sales of previously owned homes. After a decline in May, June provided a rise. Even though it was lower than what was hoped, this is good news for the market, overall.
It may also look like good news that groundbreaking on new homes has increased. However, the number of building permits declined, which is a bit more of a future indicator.
July provides a slightly larger increase, which means previously owned homes went up two months in a row. This, along with prices not topping the record levels shows the market went from insanely hot to very strong and is still pretty hot.
Leveling Off, Not Returning to Earth
As the market starts to cool off a little bit, it’s not necessarily going to return to earth anytime soon. Pre-COVID levels may not be possible in the near future, but prices may start to level off across the country.
Mortgage demand has also dropped and so have applications for loans. Even the equities market is showing a fading luster, which is one of the most forward-looking indicators.
Still a Hot Real Estate Market
Whether you’re searching for a home for sale in Mint Hill or another area of the country, it’s still a hot real estate market. The market might be cooling off a bit, but it’s not much different than pulling a pan of boiling water off the stove for a few seconds. It’s still very hot, with just a slight cooling.
Inventory is still lower than necessary to get to a balanced market and was pre-COVID, too. While returning to pre-COVID levels might be in the future, it’s not here yet and the light at the end of the tunnel is still a ways off.
The tight supply of inventory is still causing prices to rise. Inventory has been up over the summer, but still down compared to last year and the year before. It’s currently around a 2.6-month supply, while a balanced market requires a 6-month supply.
Some experts believe the pool of buyers that can afford the higher prices of homes is going to become exhausted. This could cause the market to adjust, but home prices are still increasing at a higher rate than normal.
The market is still very, very hot, but a tiny cooldown has been seen. However, it may continue into the fall or it may just level off with the market remaining very hot.
I would love to be part of your journey when the time is right for you. If you ever have a real estate question or need, or know someone who does, trust that you can turn to me. I will help you make the right move! Anna Granger (704) 650-5707 | firstname.lastname@example.org | www.1stchoicepropertiesinc.com