What a Normal Housing Market Might Look Like - Austin Real Estate Agent %

What a Normal Housing Market Might Look Like

/ Home Buying, Home Selling, Real Estate / By
Share

How a Typical Housing Market Might Appear

 

Stable 30-Year Fixed-Rate

Many analysts believe that in a future typical housing market, 30-year fixed-rate mortgages will be around 5%-6%, slightly higher than in the past 10 years.

The last few years have been anything but “normal” when it comes to real estate. A normal market is balanced between a buyer and seller – one side does not have much of an advantage over the other.

Buyers’ Perspective                                     

  • More homes to consider
  • Less urgency to act immediately
  • Home inspections are not waived
  • Can request concessions from sellers
  • Fewer bidding wars
  • Homes are not bought sight-unseen

Sellers’ Perspective

  • Homes are priced right to sell
  • Equity in him built over time
  • Homes may stay on the market longer
  • Offers received at or close to the asking price
  • May need to make repairs and/or concessions

Different Types of Housing Markets

 

Sellers’ Market

This is an image of a red for sale sign with white letters with a blue sky in the background.
Occurs when there are more buyers than properties available. There is more competition, especially for homes priced right. Buyers may waive home inspections and requests for repairs.

 

Buyers’ Market

This is an image of a small wooden house sitting on a laptop keyboard with a yellow magnifying glass in front of the house.
Occurs when there are more properties for sale than buyers. Homes may stay on the market longer and sellers may have to make concessions and/or price reductions.

 

Balanced Market

This is an image of a bronze balanced scale with a gray background.
This is the transitional time, normally three to six months, between a buyers’ market and a sellers’ market. Residential property prices stable. Homes are sold at or near the asking price.

 

Local Market

This is an image of a red location pin with an image of a black house icon in the middle
For the individual buyer or seller, real estate is hyperlocal. Home sales and prices may be influenced by a community’s regulations, economic conditions or other significant factors.

 

National Market

This is an image of the United States. The states vary in different colors of blue.
When referencing this type of market, data, such as days on the market and prices, often reflects a median (halfway between the low and high numbers). Metrics may also only reflect numbers for a specific region (e.g., the Northeast) or just a portion of a region (e.g., the city of Boston).

 

I know the market can be confusing, but I am here to offer clear, concise information you can trust. Feel free to contact me and I will answer any questions you may have.

 

For a look at the current Market Statistics in Central Texas, please click here.

 

Sources: forbes.com/advisors/mortgages-interest-rates-forecast/

Scroll to Top