2021 has experienced the ultimate seller’s market. Many homes have been going under contract less than a week after appearing on the MLS with multiple offers being received. However, the week of June 21 has confirmed that the economy and Real Estate market is moving toward a more balanced state. Michele Harmon Team is here to explain!
Buyers are currently looking for large homes with garages, home offices, and updated kitchens in a quiet neighborhood. However, the Real Estate market is experiencing a gap between what buyers want in a home, how much home they can afford, and what is available to purchase. Realtor.com’s data reports show we may be past the peak of the extremely hot Real Estate market. For the first time in four months, the declining ‘Days on Market’ market moderated the week following June 19, 2021. More homeowners have listed their homes for sale and has resulted in a slow down in listing price growth. (As seen in the table below.)
In other words, high prices and low supply are starting to take some of the heat off of the housing market. CNBC reported that “even with interest rates falling slightly, mortgage application volume fell 4% last week from the previous week, according to the Mortgage Bankers Association’s seasonally adjusted index. It fell to the lowest level since February 2020. With tight housing inventory and rising home prices, home buyers have started to hit an affordability wall. All of this can result in fewer bidding wars and more reasonable offers over the asking price. If you have been weary about buying a home right now, this may give you the relief you need!
“Buyers may be taking a break from the housing market,” says Realtor.com’s Chief Economist, Danielle Hale. “There have been signs that the momentum in the housing market is slowing. The competition might not seem as intense as it’s been in the last few months.”
However, keep in mind that although this data indicates a slowdown may be near, it is still too early to tell if the hot market has come to an end. “If we see price growth stay in the double digits, you are going to get to the place where some potential buyers might pull back,” Economist from Mortgage Bankers Association, Joel Kan, said.
According to Realtor.com, Real Estate experts do not believe the market will slow down until mortgage rates significantly jump up. Rates are still historically low and mortgage payments are more affordable for buyers. Now is still a great time to buy or sell! We have been awarded Top Negotiators by HomeLight, we ranked as “𝗔𝗺𝗲𝗿𝗶𝗰𝗮’𝘀 𝗕𝗲𝘀𝘁 𝗥𝗲𝗮𝗹 𝗘𝘀𝘁𝗮𝘁𝗲 𝗣𝗿𝗼𝗳𝗲𝘀𝘀𝗶𝗼𝗻𝗮𝗹𝘀” by 𝗥𝗘𝗔𝗟𝗧𝗿𝗲𝗻𝗱𝘀 + 𝗧𝗼𝗺 𝗙𝗲𝗿𝗿𝘆, and we are currently selling homes 88.3% faster for 11.9% more money than the average Realtor. Give Michele Harmon Team a call at 713-818-1330 to get started today! We will guide you through the process and make it as stress free on you as possible.