Is the Housing Market Slowing Down?
Will the Housing Market Slow Down?
The COVID-19 pandemic saw an influx in home sales, particularly with the Millennial generation. There was such an increase in sales that the supply of available houses could not meet the demand. However, the market does not appear to be slowing down, instead, it looks like the market will level back to normal.
The housing market will generally see a steady decrease during the fall and winter months. However, even though 2021 will not see the same numbers as 2020, the market is still projected to flourish. As the market returns back to normal, inventory will increase and eventually meet the demand. This will lead to a decrease in competition and price appreciation.
What is Buyer Fatigue in the Housing Market?
While 2021 progresses, sellers could see something called ‘buyer fatigue.’ Buyer fatigue refers to buyers exhausted from the home buying process who step out of the market. During the summer, buyers were putting in offers on homes without attending showings and paying well over the listing price. As the fall season emerges, buyers will practice more caution and back off high-pressure deals. According to Zillow, over 40% of houses currently listed on the market are selling for more than the listing price.
As supply starts to pick back up, buyers will have more control, which means less competition and a decrease in bidding wars. Listing prices are projected to fall around 6%, which could mean a nice cut for buyers looking in the $200,000 to $400,000 range. Contrarily, sellers may have to lower their asking price or consider negotiation tactics to help sell homes this season.
Tips on How to Sell Your Home in the Current Market
- Staging: Make sure you are staging your home according the season in which you are selling. For the fall and winter seasons, create a cozy atmosphere and leave all holiday decor to a minimum. It also helps to bake cookies and leave them for buyers to leave a lasting impression.
- Curb Appeal: Regardless of the season, buyers decide if they are interested in your home within the first glance of the exterior. Clean up fallen leaves, power wash the siding and windows, and make sure the lawn is good shape.
- Listing Photos: Consider hiring a professional to take photos of your home to list on real estate websites. Listing photos are the first glance of your home. Professional photographers will capture the best angles of your home to draw in potential buyers.
- Hire a Knowledgeable Agent: No one can help you sell your home more than a knowledgeable listing agent. There are many cons to selling a home on your own. A listing agent will know the logistics of the real estate market and help sell your home at the price you want.
With lots of confusion around the real estate market, you may not know if you should wait or go for it. If you are interested in selling or buying a home and do not know where to start, contact a HomeHunt agent today!