The three questions about the housing market that will be discussed at every meeting this season

Whether it’s at a family gathering, your company party or catching up with friends during the holidays, the housing market always finds its way into the conversation.

Here are the top three questions on many people’s minds this season, and clear answers to help you gain confidence in the market.

1. “Can I even find a house if I want to move?”

Yes, more than a year or two ago.

The number of homes for sale has increased in recent years. According to facts by Realtor.comthere have been more than a million homes on the market for six consecutive months, something that has not happened since 2019 (see graph below):

That means two things:

• Buyers have more options.
• Sellers have more places to move to.

Many homeowners who have been putting it off are realizing that the planks are no longer bare. So if you put your home search on hold last year because nothing met your needs, it might be worth taking another look. With more homes on the market, you’re no longer competing for the same handful of listings as you were a few years ago.

And because there is a little more choice, houses don’t disappear as soon as they come on the market. That gives buyers more breathing room, more opportunities to compare and a little more time to make a confident decision.

2. “Will I ever be able to afford a house?”

Affordability is starting to improve. Finally.

These have been difficult years for buyers. But this year brought some much-needed good news:

• Mortgage interest rates have been relaxed.
• The increase in house prices is moderate.

That equates to a monthly mortgage payment that is hundreds of dollars lower than it was just a few months ago (see graph below):

Buying is still not easy, but the numbers are starting to improve. For many people, this means that buying a house becomes a more realistic goal again.

3. “Should I wait for prices to drop?”

Many people worry that the housing market is about to collapse, but the data does not point in that direction. Yes, the number of homes for sale has increased, but it is nowhere near the level needed to significantly reduce prices on a national scale. In addition, homeowners today have a lot of equity and are in a much stronger financial position than in 2008.

Of course, every local market is a little different. In some areas, prices are still rising, while in other areas that saw huge spikes a few years ago, they are stabilizing or making minor corrections. But overall, the national picture is clear: experts questioned Through Fannie Mae House prices will continue to rise, just at a slower, more normal pace (see graph below):

Therefore, waiting for a big price drop to make a deal is not a very strategic plan. History shows the same thing over and over again: people who spend time in the market tend to build wealth in the long run, not the people who try to time the market perfectly.

In short

Talking about the housing market can feel loud and confusing, especially when you hear so many different recordings. A trusted local agent can help you make sense of the data and understand your options. If you are considering buying or selling, please contact a local professional.

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