The decrease in inventory over the last five years has resulted in prices increasing and staying high. Interest rates matter and they will force some buyers out of the market; however, there is an underlying demand for housing as long as the population is steady or increasing, employment remains steady, and unemployment is low. Our country is unrelentingly optimistic and refuses to accept defeat. We can expect great things.
Prices? These are rising.
Prices have increased overall in the last five years but there was a spike that took place after COVID-19. That rate, fortunately, did not continue. Prices typically take a step up in the first five months of the year, then level off and possibly sink a little at the end of the year when properties that have languished on the market have decided their price is above the condition it warrants. The market is still rational.
This chart shows the number of new listings (brown) in each of the last 12 months versus the closed sales for that month (gray). The months of December, January, and February flip and flop. January makes up for the sales lacking in December. What do you think after looking at the chart? Most listings sell! The market is absorbing the new listings. There is no trend downward. Listings are not sitting on the shelf. Prices should stay high and continue to increase.
