Understanding the Housing Market: How Supply, Rates, and Prices Affect Your Decisions

In the world of real estate, things are constantly changing. The number of homes for sale (supply), mortgage interest rates, and home prices form a delicate dance, each factor influencing the others. As a Realtor, I aim to help you understand this dance and use that knowledge to reach your goals.

The Supply and Demand Dynamic

Think of the housing market as a giant see-saw. On one side, we have a supply of homes for sale. On the other, we have buyer demand. When supply is low with increased buyers interested, prices go up – the sellers have the advantage! But, if in the situation with more houses available than people looking to buy, prices can soften, giving buyers more negotiating power.

The Mortgage Rate Factor

Interest rates are like the grease that keeps the housing market moving. When rates are low, more people can afford to buy a home. This fuels demand and can push prices higher. On the flip side, when rates rise, a buyer's monthly payments go up too. That means affordability could be challenging, potentially leading to less demand and a cooling in prices.

Navigating Changes in Buyer Agency

It's important to understand the new process for how buyer agency now works in real estate. While the traditional model of the seller typically covering both agent commissions still exists, there are some notable changes. Disentangling online information on this topic can be confusing. Homebuyers and sellers meet with a trusted Realtor to discuss these changes and how they apply to your specific situation in our local market.

How I Can Help as Your Realtor

• Market Knowledge: Keeping a pulse on the local market with insights about current inventory levels, home price trends, and how mortgage rates affect buyer psychology.

• Realistic Expectations: Craft a plan that aligns with your budget and the market realities. Manage expectations and guide you toward areas where your money goes further.

• Your Competitive Edge: Market knowledge will help you be positioned to make strong, informed offers when the perfect property comes along.