arhome realty blog

A look at the summer real estate market

The housing market is a dynamic and ever-evolving landscape, influenced by various factors such as economic conditions, demographic shifts, and buyer/seller behaviors. As we look ahead to the summer, it's natural to wonder what lies in store for the real estate industry. In this blog, we delve into some of the predictions and insights offered by experts in the field, to gain a glimpse into the possible trajectory of the housing market in the coming months.

1. continued demand and tight inventory.

One key trend anticipated in the housing market is the continuation of buyer demand, even if it's lower than the previous year. The supply of available homes is expected to remain tight, which still creates competition for buyers. Summer is a hot time to buy or sell, as many want to get that done before the school year starts. The weather is nicer, allowing for more showings and open houses. We expect to see more activity during these upcoming warmer days.

2. rising home prices.

Experts predict that home prices will continue their upward trajectory in many areas across the United States. In February, home prices experienced a notable turnaround, marking the first monthly rise following a consecutive seven-month decline. The prices seem to be stable as home inventory is still tight and there are less new listings hitting the market. 

3. high interest rates and low mortgage affordability.

Mortgage rates continue to stay high. Rates went upward again in April after a slight decline in March. However, there is still demand in the market due to lower inventory, causing some home sales to still sell over the asking price - which is good news for sellers. Home inventory will likely stay low until mortgage rates see a decline.

4. a market crash is unlikely.

Most real estate experts agree that a crash is unlikely, citing a low supply of homes, which keeps home buying competitive and therefore prices stable. What we see is more a correction in the market, rather than a crash.  It's unlikely that foreclosures will be a big threat, however, filings increased by 6% in the first quarter of 2023.

While predicting the exact trajectory of the housing market is a challenging task, industry experts offer valuable insights that help us anticipate potential trends and shifts. As we look ahead, continued buyer demand, tight inventory, and stable home prices are some key factors to consider. It's essential for prospective buyers and sellers to stay informed, work with knowledgeable professionals, and adapt to market conditions in order to navigate the ever-changing landscape of the housing market successfully.

Contact us for a free market analysis.

Source: bankrate.com