With some confusion surrounding the real estate market right now, we wanted to offer some clarity and eliminate some of that confusion. That is why we are bringing this 4-part market update for the month of October! It will be full of information that will bring you up to speed and ease any lingering concerns.
There have been more home sales this year than last year. This is because renters still want to be homeowners! On a national average, it is still 26.3% cheaper to own a home than it is to rent. As depicted in the graph above, you can see how the median asking price for rent has sky-rocketed in the past 30 years. Although interest rates have been on the rise, let’s not forget that financially, it is still the right decision to own a home rather than rent someone else’s. With increasing rental prices, a locked-in mortgage rate for the next 30 years is far from losing its appeal.
Buyer demand is beginning to soften, but that does not mean buyer traffic has ceased. In fact, it is nowhere near reaching that level. As shown in the graph above, every single month this year buyer traffic has been greater than it was last year in that same month. Buyers have not disappeared, but they are beginning to ease as we head into the last couple of months in the year and inventory has begun to pick up.
We are starting to see more inventory in the market than we saw in the same month as last year and that’s a good thing! This means options for buyers without the burden of an impending bidding war looming over them. With that said, it still doesn’t mean that the numbers will jump dramatically. There are still plenty of buyers in the market, especially here in the Bay Area, that scoop up homes as soon as they are listed.
Even though we have seen a jump in inventory, generally, there is still not enough to keep up with buyer demand. If there is a properly priced home on the market, it’s going to sell!
Whether you are a potential seller or buyer, it is so important to always have a real estate professional that understands the market. With a shifting market, the right agent or real estate company could be the difference in success or failure in the real estate business.