From Fluctuations to Stability: Analyzing the Mid-Year Housing Market

The latest news and information on the trends in our real estate market.

As we find ourselves approaching the midpoint of the year, it's a fitting time to assess the state of the real estate market. It has seen some interesting developments in recent months, so today, we’re diving into the current trends, values, and factors that are influencing it. 

Over the past 45 days, an intriguing pattern has emerged—the number of new contracts being signed this year has exceeded the figures from the same period in 2021 and 2020. This surge in activity indicates an underlying strength and resilience in the housing market, offering a glimmer of hope for those eager to participate in the real estate arena.

In our previous update, we noted that values had reached a point of stability. This trend has continued, providing a sense of reassurance to homeowners. Moreover, we are now observing a slight upward movement in prices. While it's important to emphasize that this uptick does not constitute a significant and dynamic shift, it is a positive development. Also, it's worth noting that we have observed this trend for approximately two months, with pending prices surpassing closed prices once again. Such a progression is certainly encouraging for homeowners and investors alike.

“The housing market appears to be regaining strength.”

The current positive momentum in the market can be attributed, at least in part, to reduced inventory. As of the end of May, the number of available homes for sale was lower compared to the same period last year. This scarcity of inventory has likely contributed to the increase in demand and subsequently pushed prices upward. The impact of reduced inventory on the market cannot be overlooked, as it plays a pivotal role in shaping the overall landscape of the real estate industry.

To shed light on the past year's value fluctuations, it's essential to examine the circumstances that transpired. Last year, as interest rates began to shift, homeowners rushed to list their properties, fearing they would miss out on advantageous rates. Unfortunately, many homeowners missed the window of opportunity, resulting in a decline in values of around 8% to 10%. However, it's crucial to note that these values have since stabilized and are now showing signs of a gradual recovery. Presently, values remain approximately 10% higher than those of 2021, reflecting an average increase of 5% per year, which surpasses the historical average since World War II. 

This resilience in the housing market demonstrates its enduring appeal as a reliable investment avenue. Should you have any questions, we encourage you to reach out to us by phone call or email. We would be happy to hear from you!