"A light at the end of the seller's market tunnel"
The market has shown little signs of relenting these last two years, but in the past 8 weeks, we are seeing small signs of a shift. Inventory is increasing instead of decreasing. Bidding wars are fewer. Buyers who lost out numerous times are able to secure homes without drastic over-asking prices.
Do not get me wrong, it is still a seller's market. Inventory is very low and sellers still have an upper hand. However, this is a small step toward a more balanced market.
Several factors may be contributing to these changes. Here are some of the biggest influencers below.
1. Summer is here! Last year, the majority of people did not have a traditional summer. No one was travelling, pools were not open, family parties, get-togethers, and weddings were all on hold. This Summer, people are making up for lost time and getting out and experiencing life again. The intense pressure on staying home all the time has lifted, creating less focus on the housing market.
2. Covid Vaccines. At this point in the pandemic, anyone who wants to have a vaccine can now have one. This has allowed many people who put their home sale on hold last year due to the pandemic to feel confident to move forward with their plans adding to increased inventory in the market.
3. Buyer Fatigue. Many buyers have removed themselves from the market due to fatigue. Whether they decided to rent (rental increases are a whole other topic right now) or just not move due to the intense market, it does seem that buyer demand has weakened.
All this being said, the market is still strong with prices at record highs. We may see less of the silly market that we experienced earlier this year which is a good thing for buyers.
If you have any questions or would like to discuss your situation in more detail, I am always happy to have a conversation.