Home prices have risen to their highest point since 2008, due in part to an overwhelming amount of demand compared to the amount of houses available for sale. However, that may be changing, as more people have started putting their homes up for sale on home listings to meet this rising demand. As a result, this could have the effect of helping to cool what some see as an overheated housing market.
Home Listings On the Rise
According to Realtor.com, the number of home listings is up by 9% compared to the same time last year. This accounts for the single largest annual increase in home listings since 2017, which is when the site started tracking those numbers. By the same token, Redfin, the real estate brokerage, reported that real estate listings rose twice as fast in the four week period between April 17 and May 15 as they did during the same period in 2021.
Why House Listings Are on the Rise
The primary reason that house listings have risen is simple: there is currently a high demand for houses, but relatively little inventory available compared to the number of prospective purchasers. This lack of supply means that anyone who wants to buy a home may be willing to pay more than they usually would. This makes selling a home especially appealing right now, even for people who may not have been considering selling their home, since they may be afraid they will miss out on the current hot market.
The Potential Effect on the Price of Houses
With more people starting to put their homes up for sale, it is possible that the real estate market will begin to cool down. With more homes available for sale, there will be less intense competition for the inventory that is available, which may bring down the average price people will be able to get for their homes. This, in turn, could convince more people to start selling their homes out of fear of losing money on their home purchase, leading to prices falling further.
What This Means For You
For the moment, the real estate market is still going strong, and sellers can get a high asking price for their properties. However, as house listings continue to rise, this sellers’ market may not last, and waiting too long could prove to be detrimental in the long run. If you are looking to buy a home, however, you may want to start looking soon, because there is no telling how long any given house will remain on the market.
At Liongate Homebuyers, we assist our clients with a variety of services related to buying and selling real estate. We have experience handling real estate financing, especially for developers and house flippers. For more information, please contact us at 516-548-6553, or visit our contact page.
