The Real Estate Market:
Is it time to panic, gloat, or beat yourself up?
Updated: June 22nd, 2022
Our clients are asking about the state of the real estate market in greater Park City and beyond. We’ve fielded questions like Is the market tanking? Is it a good time to list? What’s going to happen to interest rates? Will the rate hike affect our market? Should I wait to buy? We can’t predict the future, but we can look at local and national trends. If you’re bored already and just want the answer, we’re seeing a long overdue market correction back to pre-pandemic levels. That means a market that’s more balanced for sellers and buyers. More days on market, fewer multiple offers, more to choose from, less panic.
The last two years in the housing market consistently broke records and broke many buyer’s hearts too. We saw record low mortgage rates meet high demand from millenials and people fleeing Covid. Construction hadn’t kept pace with demand due to production delays and builders being more conservative after the ‘08 debacle. Sellers were hesitant to list during Covid because they didn’t want sick people in their home or to have to find a home in the midst of a pandemic.
This combo pack meant huge demand outstripped tepid supply driving prices to record highs. Recent data shows we’re shifting back to a market similar to the years leading up to this insanity. That means data isn’t showing a crash, but it is showing a correction.
Number of Showings Show A Correction
Many markets use ShowingTime for agents to set up showings. This app tracks showings so it’s a decent tool to gauge overall trends from a broad perspective. This graphic shows that showings in the West held steady from 2014 – 2020 at about 150. They shot up to 325 in early 2021, dipped then shot up again to almost 300 in early 2022. Showings in the West are now at about 200 which is still higher than the 150 average. This shows a market balancing out.
Home Sales Show A Return to Pre-Pandemic Levels
Existing home sales between 2017 – 2019 show sales at a steady rate hovering between 5.3 -5.5 million, rocketing up to 6.1M with a projection of 5.6 million for 2022. The latest graph shows numbers projected above 2019 which was considered a strong market. Here is a look at existing home sales from 2017 – April 2022 from the National Association of Realtors (NAR):
So far, today’s housing market is looking much like the market of 2019 which was considered the strongest housing market in a decade at the time.
It’s Time To Chill
Of course recent headlines are getting everyone in a lather – no one would click if they didn’t – but so far it looks as though the market is returning to pre-pandemic levels. One of the best resources for data on this market is Realtor.com in the 2022 Mid Year Market Update. Our best advice for this market is to stay the course and be patient. If you plan to sell it may take a bit longer than the heady days of multiple offers and sales within days, but if you’re willing to wait, your home will still sell for a strong price. If you plan to buy and need financing, it likely makes sense to buy now and lock in your rate instead of waiting for prices to go down further. Let’s connect if you plan to buy or sell and we can update you on the market