The real estate market in the US has seen a steady rise in housing prices over the past few years, increasing by around 15% according to Redfin data. However, high mortgage rates and listing prices have left many potential buyers hesitant to make a purchase.
Sellers, on the other hand, have been reluctant to sell due to their low mortgage rates obtained during the pandemic. This, coupled with slow housing construction, has led to a shortage of around 1.5 million homes in the US as of early 2024.
Despite the challenges, there are signs that conditions in the market are improving, with opportunities for buyers to secure deals with less competition and more favorable negotiation terms. Interest rates have remained relatively stable, keeping some buyers on hold and lowering competition for those ready to act.
Inventory of active homes for sale has been increasing, which could help reduce competition and moderate housing prices. Sellers, however, have become overconfident in their asking prices, leading to more homes sitting on the market for longer.
Overall, these factors could lead to a solid real estate market this summer, particularly for buyers who are patient and financially prepared. By identifying motivated sellers and securing advantageous deals, buyers can benefit both now and in the future.