Annandale REAL ESTATE
Is the Housing Market Slowing Down?
By: Pat Sawhney, ReMax 100
As we all know, Supply and Demand is a major factor in the housing market. Starting in January 2022 there was a huge disparity between supply and demand with many buyers coming out of the woodwork due to lower interest rates and because it was a new year! But, not many sellers were ready to market their homes.
However, the demand then pushed up prices to historically high levels. This continued into April. But when interest rates started to rise, the buyer's ability was affected with their inability to qualify. As a result, sales started to slow, more people decided to rent or continue to rent. A leveling off started to occur and has continued.
Now, we see prices decreasing. On searches that I have saved I’ve seen a big jump in the # of “price decreased” notices and an increase in inventory (supply). Then there’s the factor of inflation rearing its ugly head! Gas prices, shrinkflation, and more affecting our pocketbooks!
Buyers who are still in the game are taking their time, looking at more properties before making a decision, and being cautious. How long will this last? In recent months, the total number of new homes sold has started to decrease, dropping an estimated 16.6% from March to April, according to census data.. The decrease may indicate that surging demand is finally starting to slow down.
Interest rates have pushed above 5% for the first time in a decade, which still is a very favorable rate in the long term. The Fed will again raise interest rates, which has already been factored into the mortgage rates.
So, what is a buyer to do? Please give me a call to discuss the market, as a seller or buyer, as to how all of this relates to your housing plans.
Adding a couple tips here relative to your home maintenance—be sure to keep your dryer ductwork cleaned; when it’s raining walk around your house to see if water is properly draining away from the foundation. Having remedial work done inside is usually not the answer as the water incursion needs to be controlled from the exterior.
Simple House Maintenance Tips:
ReMax 100 Realty
5501 Bradlick Rd.
Springfield, VA 22151
More on Annandale Real Estate
Median Home Price in Annandale
Prices are expected to continue to escalate during 2022 but not at as rapid a rate.
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