When Will the Housing Market Cool Off?

If you are a prospective homebuyer who is waiting for the ideal time to jump into the market, you understandably want to know if the market is showing signs of cooling off. Over the last year, the average home price has increased by 17 percent. The average listed home received an offer within its first two weeks on the market, and bidding wars have been unfortunately common.

If you are looking for signs of slowing, it is important to note two things. First, interest rates continue to be near their record lows. This means that buyers can get more house for their dollar. Second, the supply of homes is not yet close to meeting demand. Will the seller’s market continue?

Over the last few months, both listing prices and the number of bidding wars have declined. Nonetheless, both of these continue to be substantially higher than they were only a year ago. Will this trend continue, or is it a seasonal decline? Historically, the housing market has lost steam in the fall and winter months, and it has regained that steam in the spring and summer months. The hottest months for home sales have traditionally been April and May. Consider this fact along with the low interest rates and tight supply. You can see that this deceleration in the market may only be seasonal.

If you are in the market to buy a new home soon, your next step is to get prequalified. Our loan originators at MortgageDepot are happy to guide you through the process. Contact our team today to get started.

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