IS THE REAL ESTATE MARKET SLOWING DOWN, OR IS THIS A HOUSING BUBBLE?
The Reality of the Shift in Today’s Housing Market
The supply and demand for housing have actually reached a turning point. According to realtor.com, active listings have surged by more than 26% over the previous year, but showings as measured by the most recent ShowingTime Showing Index have dropped by nearly 17%. (see graph below). Housing is at a turning point because, over the past two years, there has been a huge increase in demand (showings) but a shortage of homes for sale relative to the number of people looking to buy. The market went crazy as a result.
Supply and demand are substantially different today, and the market is moving less quickly than before.
What Analysts Say Will Happen to Home Prices in the Next Year
The majority of experts currently predict that home prices will increase in 2023, albeit at a much slower rate than they did in the previous two years. According to the six forecasters listed below, the average national home price increase will be 2.5% in the upcoming year. Only one of the six advocates a decline in property prices.
The national real estate market is slowing down but is not a bubble that is about to burst when we consider the shift in the market as well as what experts are saying. Not that there aren't certain hot marketplaces here and there.
Many people worry that we are in a housing bubble as the real estate market is slowing down. The housing market has seen historically high levels of demand and limited supply over the last two years. Home values increased at a historic rate as a result of this. Experts predict that the national real estate market will increase in value in the upcoming year, despite the possibility of price declines in some overheated sectors in the short term.
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