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Is The Real Estate Market Getting Cold?

Is The Real Estate Market Getting Cold?

The real estate market has been showing signs of a soft patch, with a shortage of buyers weighing down on the market and relatively few new listings leading to an increase in homes sitting on the market longer than a month.

According to a report by Redfin, a higher percentage of U.S. houses remained on the market for at least 30 days without going under contract, a 12.5% increase in July compared to the same month last year. In other words, more than two-thirds (61.2%) of for-sale homes had been listed for at least 30 days, an increase from 54.4% a year earlier.

Homes staying on the market longer indicates that the housing market is slowing due to 5%-plus mortgage rates and an unstable economy. In the first half of 2022, rates rose quickly, peaking at 5.8% in June before a minor decline to an average of 5.4% in July. Inventory has been building up for several months due to buyers slowing down and sellers scrambling to list their properties before the market cools even further.

The number of available homes in the United States increased by 4% year over year in July, the most since mid-2019, which is one reason why the supply shortage is easing.

Have we officially shifted from a seller’s market to a buyer’s market?

In the latest episode of The Shawn and Matt Show, we discussed Stale Listings, a zip code in Northern VA where the median price went up 40%, and Mark Cuban’s opinion on Metaverse real estate.