Did the market just shift back into overdrive?
Buyers, sellers, and Realtors® have a long list of things to watch for as the market gears up for this year’s spring buying and selling season. The trend toward less frantic and more balanced conditions is beginning to take on a different look.
Some market watchers say the sellers’ market is living on borrowed time. They think many consumers are underestimating the amount of new home construction underway and being planned. The number of new developments is eye-catching. Some of that is because we’ve grown accustomed to almost two decades of underbuilding. But new homes don’t come out of the ground overnight. The labor shortage, material prices, and an undependable supply chain guarantee that what’s underway and on the planning board won’t come at warp speed.
Mortgage rates are moving up, and more increases are on the way. That could cause the market’s return to less a less frantic pace to do an abrupt about-face. If too many buyers see now as the best time to snag a COVID-inspired low mortgage rate and pour into a depleted-inventory market it could spike buyer competition.
As we move out of January and into February, there are many moving parts in today’s marketplace and keeping tabs on them means everyone concerned will have to stay on their toes.
The best watchwords for the next few months are going to be ignoring most of the national and state-level housing reports and paying extra-close attention to local market conditions.
NETAR is the voice for real estate in Northeast Tennessee. It is the largest trade association in the Northeast Tennessee, Southwest Virginia region, representing over 1,600+ members and 100+ business partners involved in all aspects of the residential and commercial real estate industries. Weekly market reports and information for both consumers and members are available on the NETAR website at https://netar.us