Terms that have long defined residential retail behavior may not apply to 2023, according to the findings of a research team at the real estate site Realtor.com.
Those findings note that a mix of influences, including the overall economy, mortgage rates, and uncertainty about the future of inflation, have combined to create…confusion.
This means forget what in the past has been called a “buyer’s market” or “seller’s market.”
“Today, real estate is ‘nobody’s market,’” remarks Danielle Hale, chief economist for Realtor.
In an analysis for the site, Hale notes that while the number of homeowners nationally continues to lag, “inventory and time on market continues to climb, reflecting still-hesitant buyers.”
Among the industry’s mixed signals: mortgage rates for a 30-year fixed-rate home loan have steadily fallen in recent months but remain high enough to “leave a whole lot of buyers leery about closing the deal.”
At the same time, median home listing prices in the neighborhood of $400,000 are up over the same time last year, making the dream of owning a home for many Americans increasingly elusive.
Add into the mix the fact that more homes are sitting on the market. Earlier this month, the national inventory was up by 70% over where it was in February of 2022. With new listings declining, says Hale, “the growing number of homes for sale reflects still-low buyer interest amid high costs.”
Despite these challenging and sometimes even bleak numbers, Hale thinks the market may be incrementally moving forward. There is evidence that buyers are still buyers, only for the present they are also carefully considering their options before making a deal.
At the other end, if a home is priced right, a seller can still sell. “Longer time on market overall doesn’t necessarily mean longer time on market for the most desirable homes,” Hale adds.
By Garry Boulard
