We are hearing lots of news these days about how expensive everything is getting because of inflation. One area of the economy that appears to still be as financially competitive as ever, probably more so, is the housing market. The demand for homes continues to be through the roof (no pun intended) and real estate agents are some of the busiest professionals around! As 2021 (unbelievably) starts to wind down and the holiday season quickly approaches, it’s important for agents to know what to expect this winter when it comes to real estate trends.
Yahoo! recently wrote how during the summer, home prices across the country were up 24.8% year-over-year with the median sale price at a whopping $386,888. The number of homes available for sale plummeted nearly 40% also, so it is clear to see why the market is so competitive for buyers. When industry experts say that inventory is low, they aren’t kidding!
The expected economic upturn for the country proved to be a little inconsistent also, which of course had a direct impact on real estate. The stock market gains were extremely positive, and despite a slow start, the unemployment rate is starting to drop significantly. But then there’s record inflation. Much of the bizarre global financial trends can be put down to the emergence of the Delta variant of COVID-19 during the early summer. Home buying is notoriously slower in the winter months, but given the huge demand we saw earlier in the year, it might not be as slow as it was in previous years. In fact, comparatively speaking it could be a very busy time for real estate agents.
Bankrate.com said that another key factor was the global supply chains greatly affecting the rate at which building materials were delivered for new builds. Wood was a particularly hard material to get. Not only did we see a lack of homes for sale earlier in the year, but also a lack of new construction. For the northern half of the country, the winter months are far from ideal construction periods so even if the global supply chain issues do get fixed up; it won’t necessarily translate into a flood of new homes being built yet. Real estate agents wouldn’t see the benefits of the supply change being fixed until the spring. So prices are likely to remain high for now and it will continue to be a seller’s market.
Forbes appears to confirm this prediction and urges potential buyers to wait a little longer. Their financial experts suggest mortgage rates, home prices, housing supply, and buyer demand will all equally dictate the market over the coming months, so look at all these factors in a balanced manner. Mortgage rates are predicted to go up though, especially if inflation doesn’t slow down. The good news here on inflation is that it is very much at the top of the Federal Government’s list of concerns, but only time will tell if it is slowed.
When it comes to the indisputable experts of real estate, especially when it comes to buying and selling a home, Lantern Real Estate Group are the finest in the metro Atlanta area. Let one of their agents help you understand the ever-changing landscape of the home market when you need it.