October 2022 housing supply still tight

Over the past two years, the substantial imbalance of low housing supply and high buyer demand pushed home sales and buyer competition to new heights. Now, things have changed and we are moving back to the housing market in the days leading up to the covid pandemic, which was a more stable time.

This year, buyer demand has eased as higher mortgage rates and mounting economic uncertainty moderated the market. This slowdown in demand is clear when you look at the red bar on the graph. We are seeing 12% fewer home showings across the nation compared to last year.

We also see, that nationwide, the number of homes actively listed on the market are up nearly 27% compared to last year. That’s because the moderation of demand allowed housing inventory to increase in 2022.

eaa1b182-ef52-0ce8-0288-1af9e8ab5ed6.png

WHAT DOES THIS MEAN IF YOU ARE LOOKING TO BUY A HOME?

Know that you will have LESS COMPETITION and MORE OPTIONS than you would have had last year.

A few words of advice:

  • Housing supply continues to be historically low
  • When Sellers price their homes right, there is still some competition for their homes
  • Pricing is now more transaparent than in the past 2 years. This means, the subsantial premiums over asking price have subsided to a great degree.

We developed these 5 keys to ensuring your success when Home Buying. This is just one of the pieces we review when you connect with us for Your homebuyer’s strategy consultation.

GRAB YOUR GUIDE HERE

6454fc49-e575-78f8-66ec-7e429f2bf760.png

 

CONSIDERING SELLING?

If you’re looking to sell your house, know that inventory is still low overall. That means, if you work with us to price your house strategically, IT WILL SELL despite the inventory gains and moderating buyer demand this year. We continue to see multiple offers on homes here in the Bay Area that are priced strategically to generate homebuyer demand. That’s because there are still buyers out there who NEED to move, and your home may be exactly what they’re looking for.

The chart below shows that supply this year has surpassed 2021 levels by over 30%, but we are still not in a balanced market. Zooming back to 2019, the last “NORMAL” year in real estate, now we are still roughly 40% BELOW the housing supply we had at that time.

We developed this Winning Game Plan When Selling Your Home, to take the guesswork out of the process and to help you with a successful home sale.

 

WE ARE HERE TO HELP

With all that is happening in our world right now, let’s have a conversation with you about your unique of situation. Financial stability becomes more of a focus during these uncertain economic times, and no two situations are exactly the same. As CPAs and licensed Realtors, our team has deep financial and real estate expertise and we are uniquely skilled to help you navigate your family’s housing needs.

If your current housing situation no longer meets your family’s needs, reach out to us for a strategy session, where we can help you evaluate your options. We have access to local lending programs with interest rates well below what you see published online and in the news.

Explore Latest News

National Real Estate Insights – February 2024

Report Highlights Year over year, the median existing-single-family home sales price was up 5%, and the median condo/co-op sales price...

February 2024 Housing News – Homes will NOT get more affordable around here

As we get ready to end the holiday week for some of us, I wanted to share Your Bay Area...

Understanding Bay Area’s Housing Market: No Improvement in Affordability Expected Soon

In the heart of California, the Bay Area stands as a beacon of opportunity and innovation, attracting individuals from all...