Adjusting Expectations

The covid-19 pandemic drew record numbers of people to the real estate market. Suddenly it seemed like everyone and their brother was buying and selling and moving to the ‘burbs. Many became intent on moving and are still looking for their forever home, only to be met with record setting list prices and unpredictable interest rates. 

Thankfully, it seems as if the tides are turning towards a more balanced market. The median home price is still a whopping $435,000, but as of August was at a record $450,000. The price drop of $15,000 is the first time home prices fell in six years. 

Additionally, the national inventory of available homes took a huge upward leap by nearly 31% in July, a record high growth rate. Experts say that this drop in home prices and increase in inventory may very well be leading the market toward “a state of balance not seen since the COVID-19 pandemic led to a full-blown seller’s market.”

Here’s Where You Might Need to Adjust

This might not help the buyer who has still been priced out of the market this year. This may require opting for a starter home instead of your ultimate dream home. The rule of thumb is that you will build equity in that home if you plan to live there for five years or longer. And once you do build equity, you’ll be in a stronger position to buy your next home. This doesn’t mean settling, though. You still want to find a home you will love! Don’t compromise your entire wishlist just for the sake of buying a home.